The spot rate broke the intermediate resistance of its medium term bullish channel at 107.80 leading to an acceleration. A pull back at these levels is expected before a resumption of bullish trend and reach the upper limit of its channel at 108.80.
Technical indicators do not provide clear signals but until that the support has not broken the assumption of a pull back is most likely. 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 107.80 with the 1st objective of 108.40, then 108.60. A break though 107.60 will invalidate this scenario.
