The spot rate is currently testing the intermediate support of its medium term bearish channel in the point 1.3080 indicating a possible rebound. However, a breakdown of these levels will entail a decline to its lower limit 1.2990.
Technical indicators provide signals for Sell-deals, but their location near the oversell zone confrims the assumptions of a rebound. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to the previous events, the market indicates a bullish opportunity at the level 1.3080 with 1.3140 and 1.3160 seen as the first targets. A breakdown of the level 1.3060 will reverse this scenario.
