The spot rate is currently testing the upper limit of its medium term bearish channel at 1.3300 and seems to initiate a decline. However a break through these levels will release good potential and initiate a bullish trend.
Technical indicators provide sell-signals and are approaching the overbuy zone supporting the assumptions of a decline. Bollinger bands are much discarded as a result of the strong increase that happens these days. Stabilization is expected in a short term.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 1.3300 with the 1st objective of 1.3360, then 1.3380. A break through 1.3280 will alter this scenario.
