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.
Albert Fitoussi is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.