The spot rate is currently testing the intermediate support of its medium-term bearish channel at 1.2920 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1.2880.
Technical indicators provide buy signals and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate support of its channel, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1.2920 with the 1st objective at 1.2980 and then at 1.3000. A breakthrough of 1.2900 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 1.2920 with the 1st objective at 1.2860 and then at 1.2840. A breakthrough of 1.2940 will invalidate this scenario.