FX.co ★ EUR/USD Intraday Technical Analysis

The spot rate is currently testing the upper limit of its medium-term bearish channel at 1.2970 suggesting a decline. However, a break of these levels will initiate a bullish channel.
Technical indicators provide buy 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.

The spot rate is currently testing the upper limit of its channel, we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell on the level of 1.2970 with the 1st objective at 1.2910 and then at 1.2890. A breakthrough of 1.2990 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.2970 with the 1st objective at 1.3030 and then at 1.3050. A breakthrough of 1.2950 will invalidate this scenario.