The spot rate is currently testing the lower limit of its medium-term bearish channel at 102.70 suggesting a rebound. However, a break of these levels will free a large potential and initiate a more violent bearish channel.
Technical indicators provide buy signals, and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
The spot rate is currently testing the lower limit 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 102.70 with the 1st objective at 103.30 and then at 103.50. A breakthrough of 102.50 will invalidate this scenario. The second scenario is a break of its support where we recommend a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 102.70 with the 1st objective at 102.10 and then at 101.90. A breakthrough of 102.90 will invalidate this scenario.