The spot rate is currently testing the intermediate support of its medium term bullish channel at 1.3320 suggesting a rebound. However, a break of these levels will trigger a return to the lower limit of this one - to 1.3250.
Technical indicators provide buy-signals but are approaching the overbuy zone supporting the assumptions of a decline. 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 at 1.3320 with the 1st objective of 1.3380, then 1.3400. A break through 1.3300 will invalidate this scenario.
