The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 108.50 indicating a possible decline. However, if these levels are passed through, the upper limit of its channel 110.60 will be reached.
Technical indicators do not provide clear signals but located closely to the overbuy zone. This fact indicates the possible decline. Bollinger bands are much discarded due the strong increase that took place these days. The situation is expected to stabilize soon.
Considering the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 108.50 with its 1st objective seen at the 109.10 and further at 109.30 levels. The breakdown of the level 108.30 will reverse this scenario.
