The spot rate is currently testing the upper limit of its medium term bearish channel at 107.70 and seems to initiate a decline. However a break of these levels will free up significant potential and initiate a bullish trend. Technical indicators provide buy-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 the strong decline of these days. Stabilization is expected in the short term. According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 107.70 with the 1st objective of 108.30, then of 108.50. A break at 107.50 will invalidate this scenario.
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