The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3490 and seems to initiate a decline. However a break of these levels will free up significant potential and initiate a bullish trend.
Technical indicators provide sell-signals and are approaching to the overbuy zone supporting the assumptions of a decline. Bollinger bands are much discarded as a result of the strong increase of these days. Stabilization is expected in the short term.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance in 1.3490 with the 1st objective of 1.3550, then 1.3580. A break through 1.3470 would invalidate this scenario.
