The spot rate approaches the intermediate support of its medium-term bullish channel at 102.20 suggesting a rebound. However, a break of these levels will enable the lower limit of its channel at 101.80.
Technical indicators provide buy signals and until the support is not broken, the assumption of a rebound 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 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 102.20 with the 1st objective at 102.80 and then at 103.00. A breakthrough of 102.00 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means selling the spot rate as soon as it is broken through its support of 102.20 with the 1st objective at 101.60 and then at 101.40. A breakthrough of 102.40 will invalidate this scenario.