Strategy of the day on EUR/USD
The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.3230 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.3390.
Technical indicators do not provide clear signals, but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
The spot rate is currently testing the intermediate resistance of its channel, so we suggest 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell on the level of 1.3230 with the 1st objective at 1.3170 and then at 1.3150. A break through 1.3250 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a buy stop, which means to buy the spot rate as soon as it has broken through its resistance of 1.3230 with the 1st objective at 1.3290 and then at 1.3310. A break through 1.3210 will invalidate this scenario.
The material has been provided by InstaForex Company – www.instaforex.com