The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.2840 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.2920.
Technical indicators do not provide clear signals but until the resistance is not broken a decline is most likely. Bollinger Bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is currently testing the intermediate resistance of its channel, so we recommend 2 scenarios. The first one is the hypothesis of a decline. In this case, we recommend selling at the level of 1.2840 with the 1st objective at 1.2780 and then at 1.2760. A break through 1.2860 will invalidate this scenario. The second scenario is a break of its resistance. In this case, we recommend a “buy stop”, which means to buy the spot rate as soon as it has broken through its resistance of 1.2840 with the 1st objective at 1.2900 and then at 1.2920. A break through 1.2820 will invalidate this scenario.
The material has been provided by InstaForex Company – www.instaforex.com
The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.2840 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.2920.
Technical indicators do not provide clear signals but until the resistance is not broken a decline is most likely. Bollinger Bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is currently testing the intermediate resistance of its channel, so we recommend 2 scenarios. The first one is the hypothesis of a decline. In this case, we recommend selling at the level of 1.2840 with the 1st objective at 1.2780 and then at 1.2760. A break through 1.2860 will invalidate this scenario. The second scenario is a break of its resistance. In this case, we recommend a “buy stop”, which means to buy the spot rate as soon as it has broken through its resistance of 1.2840 with the 1st objective at 1.2900 and then at 1.2920. A break through 1.2820 will invalidate this scenario.
The material has been provided by InstaForex Company – www.instaforex.com
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