The spot rate is presently testing the lower limit of its medium term bearish channel in the point 107.40 indicating the prospect rebound. However, if these levels are broken down, a significant potential will be released resulting in more violent movement of the bearish channel.
Technical indicators provide signals for BUY-deals confirming the possible rebound that is likley to take place in the nearest future. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the starting of a violent movement.
Proceeding from the previous situation, the market indicates a bullish opportunity at the level 107.40 with a 1st objective seen at the 108.00 and 108.20 levels. If the level 107.20 is passed through, the proposed scenario will be reversed.
