As we predicted, on Friday the spot rate bounced off at the lower limit
of its medium term bullish channel at 1.5580 and reached the upper limit at
1.5700. It seems to be declining now but a break through these levels will
release good potential and initiate a more violent bullish channel.
Technical
indicators do not provide clear signals but until the resistance is not broken
the assumption of a decline is most likely. Moreover, it approach of overbuy
zone is supporting the assumption of a decline. Bollinger bands have stabilized
showing a more regular volatility and evolve at the same levels as the upper
limit and lower limit of the channel are supporting the hypothesis of a violent
movement in case of the exit.
If the spot rate is at its resistance, then we can recommend 2
scenarios: the first one is to buy the spot rate as soon as it has broken
through its resistance of 1.5700 with the 1st objective at 1.5760 and the
further one at 1.5790. A break through 1.5680 will invalidate this scenario.
The second one is to sell the spot rate at the level of 1.5700 with the 1st
objective at 1.5640 and then at 1.5620. A breaking through 1.5720 will
invalidate this scenario.
No comments:
Post a Comment