At the moment the spot rate is testing the upper limit of its medium term bearish channel in 1.0011 and is expected to decline. However, in case these levels are broken down, a significant potential will be revealed resulting in the beginning of the bullish trend.
Technical indicators provide signals for Sell-deals; their location close to the overbuy zone confirms the assumptions of a decline. Bollinger bands are much discarded due to the strong growth of the pair that took place these days. The situation is expected to stabilize soon.
Considering previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.0011 with a 1st objectives seen at the 1.050 and 1.070 level. If the level 99.80 is passed through, the proposed scenario will be reversed.
