The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.2190 and seems to initiate a decline. However, a break through these levels will release good potential and will be able to reach the upper limit of this one to 1.2490.
Technical indicators do not provide clears signals but evolve in oversell zone supporting the assumption of a break of its resistance. 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 of 1.2190 with the 1st objective at 1.2250 and then at 1.2270. A break through 1.2170 will invalidate this scenario.
