The spot rate is presently testing the upper limit of its medium term bearish channel in 1.3230 and is likely to decline. However, a breakdown of these levels will reveal significant potential and initiate a bullish trend.
Technical indicators provide signals for buy deals but as long as the resistance level is unbroken, the assumption of a decline is relevant. 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 1.3230 with 1.3290 and 1.3310 seen as first targets. A breakdown in 1.3210 will cancel this scenario.
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