The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 97.80 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 100.00.
Technical indicators provide sell-signals and untill 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 of 97.80 with the 1st objective at 98.40 and then at 98.60. A break through 97.60 will invalidate this scenario.
