The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3270 and is likely to decline. However, a breakdown of these levels will reveal significant potential resulting in the beginning of a bullish trend.
Technical indicators do not provide clear signals but as the resistance level remains unibroken, the assumption of a decline is relevant. Bollinger bands have greatly tightened in recent days indicating a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.3270 with 1.3330 and 1.3350 seen as first targets. A breakdown in 1.3250 will cancel the proposed scenario.
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