The spot rate is currently testing the upper limit of its medium term bearish channel in the point 1.3220 and is likely to initiate a decline. However, in case these levels are broken down, the significant potential will be revealed resulting in the beginning of a bullish trend.
Technical indicators provide signals for Sell-deals confirming the assumptions of a decline. Bollinger bands have greatly tightened in recent days indicating a decline in volatility and the imminence of a violent movement.
Proceeding from the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.3220 with its 1st objectives seen at 1.3280 and 1.3300 levels. In case the level 1.3200 is passed through, the proposed scenario will be reversed.
