The spot rate is currently testing the upper limit of its medium term bullish channel in 107.60 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend more violent.
Technical indicators provide sellers signals and evolve in overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 107.60 with a 1st objective of 108.20, then 108.50. A break in 107.40 would invalidate this scenario.
