The spot rate is currently testing the upper limit of its medium term bearish channel in the point 110.60 and is likely to initiate a decline. However, a breakdown of these levels will reveal the significant potential and start a bullish trend.
Technical indicators provide the signals for SELL-deals evolving in the overbuy zone. They confirm the fact that the decline is likely to take place. Bollinger bands are much discarded resulting in the strong increase that recently takes place. The situation is expected to stabilize soon.
According to the previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in the point 110.60 with its 1st objective seen at the 111.20 level and further at the 111.50 level. If the 110.40 level is passed through, the given scenario will be cancelled.
