The spot rate is evolving since August 10th between the upper limit of its medium term bullish channel at 1.5720 and the intermediate support of this one at 1.5670. It approaches now the intermediate support supporting the assumption of a rebound. However, a break of these levels will release a good potential and will enable to reach the lower limit of this one at 1.5590.

Technical indicators do not provide clear signals but until the resistance or the support is not broken, no clear trend has emerged. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is between 2 limits and we recommend 2 scenarios: the first one is a “buy stop”, then we recommend to buy the spot rate as soon as it is broken through its resistance of 1.5720 with the 1st objective at 1.5780 and then at 1.5800. A breakthrough 1.5700 will invalidate this scenario. The second one is a rebound of its support, then we recommend to buy on the level of 1.5670 with the 1st objective at 1.5720 and then at 1.5740. A breakthrough 1.5650 will invalidate this scenario.