The spot rate has tested the upper limit of its medium term bullish channel and fell down. It is currently evolving around the levels of support through its channel at 96.80 and seems to initiate a rebound. However, a break of these levels would result in acceleration towards the lower limit of its channel to 95.30.
Technical indicators do not provide clears signals but approach overbuy zone supporting the hypothesis of a break of its support. Also lower volumes increase the risks of false signals. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
We recommend buying the spot rate on the levels of 96.80 with a target of 97.40. However, we would put a stop loss if there is a break through 96.60 and in this case we will recommend a sell with a target of the lower limit of the channel at 95.30.