The spot rate is currently testing the intermediate support of its medium-term bearish channel at 1.3020 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1.2970.
Technical indicators do not provide clear signals but the rate approaches oversell zone. 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 1.3020 with the 1st objective at 1.3080 and then at 1.3100. A breakthrough of 1.3000 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 1.3020 with the 1st objective at 1.2960 and then at 1.2940. A breakthrough of 1.3040 will invalidate this scenario.