The spot rate is at the moment testing the intermediate resistance of its medium term bullish channel at 1.3160 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel - 1.3540.
Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline is most likely. 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 will provide a bullish opportunity as soon as the spot rate has broken through its resistance - 1.3160 with the 1st objective at 1.3220 and then at 1.3240. A break though 1.3140 will invalidate this scenario.
