The spot rate is currently testing the intermediate support of its mid-term bearish channel at 1.2510 suggesting a rebound. However, a break through this level will trigger a decline to a lower limit – 1.2260.
Technical indicators provide BUY signals supporting the assumption of a rebound. Bollinger bands have much tightened within recent days showing a decline in volatility and a strong movement.
According to the previous events, the market will provide a bullish opportunity at the level of 1.2510 with the 1st objective at 1.2570 and then at 1.2590. A break through 1.2490 will alter this scenario.
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