The spot rate approaches the intermediate resistance of its medium-term bearish channel at 103.40. It seems that a decline was initiated. However, a break of these levels will free a large potential and reach the upper limit of its channel at 104.20.
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 103.40 with the 1st objective at 102.80 and then at 102.60. A breakthrough of 103.60 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 103.40 with the 1st objective at 104.00 and then at 104.20. A breakthrough of 103.20 will invalidate this scenario.