The spot rate is approaching the lower limit of its medium term bearish channel at 105.60 suggesting a rebound. However, a break though these levels will free significant potential and entail a bearish channel to be more violent.
Technical indicators provide sell-signals but are approaching the oversell zone supporting the assumptions of a rebound. 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 105.60 with the 1st objective of 106.20 and further at 106.50. A break though 105.40 will alter this scenario.
