The spot rate is presently testing the intermediate support of its medium term bearish channel in 105.90 and is likley to rebound. However, a breakdown of these levels will entail a decline to its lower limit in the point 103.60.
Technical indicators provide sellers signals supporting the assumption of a return to its support in the nearest future. 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 at levels 105.90 with 106.50 and 106.70 seen as first targets. A breakdown in 105.70 will cancel this scenario.
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