The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2980 and seems to initiate a decline. However, a break of these levels would free up significant potential and initiate a bullish trend.
Technical indicators do not provide sell signals but evolve in overbought zone suggesting a decline in the short term.
According to previous events, the market will indicate a bullish opportunity, as soon as the spot rate will break its resistance at 1.2980 with the 1st objective of 1.3040, then of 1.3060. A break through 1.2960 would invalidate this scenario.
