The spot rate has broken the lower limit of its medium term bullish channel in 1.3050 resulting in an acceleration. A pullback on these levels is expected before a resumption of the bearish movement. In this case the spot rate will reveal a large potential and initiate a new channel.
Technical indicators provide sellers signals but approaching to the oversell zone confirms a possible pullback. 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 bearish opportunity on the levels of 1.3050 with 1.2990 and 1.2960 seen as first objectives. A breakdown in 1.3070 will reverse this scenario.
