The price broke the lower limit of its medium term bullish channel at 1.3180 leading to acceleration. A pull back at these levels is expected before a resumption of bearish trend. However, a break though these levels will mean a false exit and could lead to a violent bullish movement.
Technical indicators provide sell-signals but are approaching the oversell zone suggesting a rebound. 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 indicates a bearish opportunity at the levels of 1.3180 with the 1st objective of 1.3120, then at 1.3090. A break though 1.3200 will invalidate this scenario.
