The spot rate punctured the intermediate resistance of its medium term bullish channel at 1.3210 leading to acceleration. A pull back at these levels is expected before a resumption of bullish trend and reach the upper limit of its channel at 1.3420.
Technical indicators provide sell-signals but are approaching the oversell zone supporting the assumptions of a pull back. 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 indicates a bullish opportunity at the levels of 1.3210 with the 1st objective of 1.3270, then 1.3290. A break through 1.3190 will chnage this scenario.
