The spot rate is currently testing the intermediate resistance of its medium term bullish channel at 1.3160 suggesting a decline. However, a break through these levels will allow it to reach the upper limit of its channel at 1.3530.
Technical indicators provide sell-signals and until the resistance is unbroken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline recently. Stabilization is expected in the short term.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has punctured its resistance at 1.3160 with the 1st objective of 1.3220, then of 1.3250. A break though 1.3140 will invalidate this scenario.
