The spot rate is currently testing the lower limit of its medium term bearish channel at 1.2930 suggesting a rebound. However, a break through this level will release good potential and initiate a more violent bearish trend.
Technical indicators provide buy-signals supporting the assumption of a rebound. 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 at the level of 1.2930 with the 1st objective at 1.2990 and then at 1.3020. A break through 1.2910 will alter this scenario.
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