The spot rate is currently testing the intermediate resistance of its medium-term bearish channel in 1.6170 suggesting a decline. However, a break of these levels would allow it to reach the upper limit of its channel to 1.6260.

Technical indicators provide buy signals but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short-term.

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 at the level of 1.6170 with the 1st objective at 1.6110 and then at 1.6090. A breakthrough of 1.6190 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means buying the spot rate as soon as it is broken through its resistance of 1.6170 with the 1st objective at 1.6230 and then at 1.6250. A breakthrough of 1.6150 will invalidate this scenario.