The spot rate is approaching to the upper limit of its medium term bearish channel at 108.60 and seems to initiate a decline. However, a break through these levels will free up significant potential and initiate a bullish trend.
Technical indicators provide sell-signals supporting the assumption of a decline in the short term. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 108.60 with the 1st objective of 109.20, then of 109.50. A break through 108.40 will invalidate this scenario.
