FX.co ★ Strategy of the day on EUR/USD

The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.3060 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.3140.

Technical indicators do not provide clear 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 intermediate resistance of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline - then we recommend a sell on the level of 1.3060 with the 1st objective at 1.3000 and then at 1.2980. A break through 1.3080 will invalidate this scenario. The second scenario is a break of its resistance - then we recommend a “buy stop” that means to buy the spot rate as soon as it has broken through its resistance of 1.3060 with the 1st objective at 1.3120 and then at 1.3140. A break through 1.3040 will invalidate this scenario.