The spot rate has broken the intermediate resistance of its medium term bullish channel in 1.3340 resulting in acceleration. A pullback is expected to take place on these levels before the resumption of the bullish trend and reaching of the channel's upper limit.
Technical indicators provide signals for Sell-deals and approaching the overbuy zone supporting the assumptions of a decline. Bollinger bands have greatly tightened in recent days indicating a volatility decline and the imminence of a violent movement.
According to the previous events, the market indicates a bullish opportunity at level 1.3340 with 1.3400 and 1.3420 seen as first targets. A breakdown in 1.3320 will revesre this scenario.
