The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.2960 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1.3040. Technical indicators provide sell signals and until the resistance is not broken the assumption of 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, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.2960 with the 1st objective at 1.2900 and then at 1.2880. A breakthrough of 1.2980 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 1.2960 with the 1st objective at 1.3020 and then at 1.3040. A breakthrough of 1.2940 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 1.2960 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1.3040.
Technical indicators provide sell signals and until the resistance is not broken the assumption of 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, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.2960 with the 1st objective at 1.2900 and then at 1.2880. A breakthrough of 1.2980 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 1.2960 with the 1st objective at 1.3020 and then at 1.3040. A breakthrough of 1.2940 will invalidate this scenario.
The material has been provided by InstaForex Company – www.instaforex.com