The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 106.30 suggesting a decline. However a break of these levels will allow it to reach the upper limit of its channel at 107.40.
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 show a bullish opportunity as soon as the spot rate has broken its resistance at 106.30 with the 1st objective of 106.90, then 107.10. A break through 106.10 will invalidate this scenario.
