The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.5560 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.5700.
Technical indicators provide sell 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.
As the spot rate is currently testing the intermediate resistance of its channel, we recommend 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell at the level of 1.5560 with the 1st objective at 1.5500 and then at 1.5480. A break through 1.5580 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means buying the spot rate as soon as it is broken through its resistance of 1.5560 with the 1st objective at 1.5620 and then at 1.5640. A break through 1.5540 will invalidate this scenario.