The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 100.10 and seems to initiate a decline. However, a break through these levels will release good potential and will be able to reach the upper limit of this one to 101.20.
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 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 100.10 with the 1st objective at 100.70 and then at 100.90. A break through 99.90 will invalidate this scenario.
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