FX.co ★ EUR/USD Intraday Technical Analysis

The spot rate bounced off to the intermediate support of its medium term bearish channel at 1.2290 and is testing now the upper limit of this one at 1.2370 suggesting a decline. However, a break of these levels will free a large potential and initiate a bullish trend.
Technical indicators do not provide clear 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. In addition, the upper band strengthens the upper limit of its channel supporting the hypothesis of a violent movement in case of failure
The spot rate tests its resistance that is why we recommend 2 scenarios: the first one is the hypothesis of a decline where we advise a sell at the level of 1.2370 with the 1st objective at 1.2430 and then at 1.2450. A breakthrough 1.2350 will invalidate this scenario. The second scenario is the hypothesis of a break of its resistance where we suggest a “buy stop”. We recommend to buy the spot rate as soon as it is broken through its resistance of 1.2370 with the 1st objective at 1.2430 and then at 1.2450. A breakthrough 1.2350 will invalidate this scenario.