The spot rate is currently testing the intermediate support of its medium-term bullish channel at 124.70 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 123.60.
Technical indicators do not provide clear signals, but until the support is not broken the assumption of a rebound is most likely. Bollinger bands have 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 124.70 with the 1st objective at 125.30 and then at 125.50. A breakthrough of 124.50 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 124.70 with the 1st objective at 124.10 and then at 123.90. A breakthrough of 124.90 will invalidate this scenario.