The spot rate is currently testing the upper limit of its medium term bearish channel at 1.3190 and seems to initiate a decline. However, a break of these levels will free up significant potential and initiate a bullish trend.
Technical indicators provide sellers signals supporting the assumption of a decline in the short term. 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 indicates a bullish opportunity as soon as the spot rate will have broken its resistance at 1.3190 with the 1st objective of 1.3250, then 1.3270. A break through 1.3170 will invalidate this scenario.
