The spot rate broke the intermediate resistance of its medium term bearish channel at 1.2480 leading to an acceleration. A pull back on these levels is expected before reach the higher limit of its channel to 1.2560.
Technical indicators provide sell-signals supporting the assumption of a pull back in the short term. 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 bearish opportunity at the level of 1.2480 with the 1st objective at 1.2540 and then at 1.2560. A break through 1.2460 will alter this scenario.
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