The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 104.20 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 105.70.
Technical indicators do not provide clears signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 104.20 with the 1st objective at 104.80 and then at 105.00. A break through 104.00 will invalidate this scenario.
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