Presently the spot rate is testing the lower limit of its medium term bearish channel at 1.2810 suggesting a rebound. However, a breakdown of these levels will release good potential and initiate a more violent bearish trend.
Technical indicators provide buyers signals and evolvment in the oversell zone supports the assumption of a rebound. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expected to stabilize soon.
According to previous events the market will provide a bullish opportunity at the level of 1.2810 with 1.2870 and 1.2890 seen as first targets. A breakdown of 1.2790 will change this scenario.
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