The spot rate is currently testing the intermediate resistance of its medium term bullish channel at 101.20 and seems to initiate a decline. However, a break through these levels will release good potential and reach the upper limit of this one to 101.80. Technical indicators provide buy-signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 101.20 with the 1st objective at 101.80 and then at 102.00. A break through 101.00 will invalidate this scenario.
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