The spot rate is currently testing the intermediate support of its medium-term bearish channel at 103.40 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 102.70.
Technical indicators do not provide clear signals, but until the support is not broken the assumption of a rebound is most likely. Bollinger bands are 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 103.40 with the 1st objective at 104.00 and then at 104.20. A breakthrough of 103.20 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 103.40 with the 1st objective at 102.80 and then at 102.60. A breakthrough of 103.60 will invalidate this scenario.