The spot rate is presently testing the intermediate resistance of its medium term bearish channel in 107.30 and is likley to decline. However, a breakdown of these levels will enable to reach the upper limit of its channel in the point 108.10.
Technical indicators provide signals for Buy-deals, but as the resistance remains unbroken, the decline is most likely to take place. 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 indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 107.30 with 107.90 and 108.10 considered as first objectives. In case the level 107.10 is passed through, the proposed scenario will be cancelled.
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