The spot rate is currently testing the upper limit of its medium term bearish channel in the point 1.3100 and is likely to initiate a decline. However, a breakdown of these levels will reveal a significant potential beginning a bullish trend.
Technical indicators do not provide clears signals but as long as the resistance level remains unbroken, the decline is most likley to take place. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance level 1.3100 with a 1st objective seen at 1.3160 and 1.3180 levels. If the level 1.3080 is broken down, the prospect scenario will be reversed.
