The spot rate is currently testing the intermediate support of its medium term bearish channel in 1.3150 indicating a rebound. However, if these levels are broken down, the rate will decline to the lower limit of the to 1.2390 level.
Technical indicators provide signals for BUY-deal, indicating the assumption of a rebound that is expected soon. For the last days Bollinger bands have significantly tightened showing a decline in volatility and the imminence of a violent movement.
According to the previous events, the market indicates a bullish opportunity at 1.3150 level with a 1st objective seen at 1.3210 and 1.3230 levels. A breakdown of the 1.3130 level will reverse this scenario.
