The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.3290 indicating a possible decline. However, a breakdon of these levels will enable to reach the upper limit of its channel 1.3350.
Technical indicators do not provide clear signals but as long as the resistance level remains unbroken, decline is most likely 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 events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.3290 with 1st objectives 1.3350 and 1.3370. If the level1.3270 is passed through, the proposed scenario will be reversed.
