The spot rate is now testing the intermediate resistance of its medium term bearish channel at 106.30 suggesting a decline. However, breakdown of these levels can allow it to reach the upper limit of its channel - 108.40.
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 its resistance at 106.30 with the 1st objective of 106.90, then of 107.20. A break through 106.10 will invalidate this scenario.
