The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.3390 leading to acceleration. A break of this level will allow it to reach the upper limit of its channel at 1.3510.
Technical indicators provide buy signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.3390 with the 1st objective at 1.3330 and then at 1.3310. A breakthrough of 1.3410 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.3390 with the 1st objective at 1.3450 and then at 1.3470. A breakthrough of 1.3370 will invalidate this scenario.