The spot rate is currently testing the intermediate support of its medium-term bearish channel at 1.6020 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1.5890.
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 where we suggest 2 scenarios: the first one is the hypothesis of a rebound, we recommend a buy on the level of 1.6020 with the 1st objective at 1.6080 and then at 1.6100. A breakthrough of 1.6000 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 1.6020 with the 1st objective at 1.5960 and then at 1.5940. A breakthrough of 1.6040 will invalidate this scenario.