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The spot rate is currently testing the upper limit of its medium term bearish channel at 1.3090 and seems to have initiated a decline. However a break through these levels will free up significant potential and initiate a bullish trend.
Technical indicators provide sell signals but are approaching the oversell zone supporting the assumptions of a break though the resistance. 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 will indicates a bullish opportunity as soon as the spot rate has broken its resistance at 1.3090 with the 1st objective of 1.3150, then 1.3170. A break through 1.3070 will invalidate this scenario.
