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The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3140 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend.
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 offer a bullish opportunity as soon as the spot rate has broken its resistance at 1.3140 with the 1st objective at 1.3200 and further at 1.3220. A break through 1.3120 will invalidate this scenario.
