The spot rate approaches the upper limit of its medium-term bearish channel at 119.60 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.
Technical indicators provide buy signals and 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 increase these days. Stabilization is expected in the short term.
The spot rate approaches the upper limit 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 119.60 with the 1st objective at 119.00 and then at 118.80. A breakthrough of 119.80 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 119.60 with the 1st objective at 120.20 and then at 120.40. A breakthrough of 119.40 will invalidate this scenario.