The spot rate is currently testing the lower limit of its medium term bearish channel at 1.2150 and seems to initiate a rebound. However, a break through these levels will release good potential and initiate a more violent bearish trend.
Technical indicators do not provide clear signals but evolve in oversell zone supporting the assumption of a rebound. 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 at the level of 1.2150 with the 1st objective at 1.2210 and then at 1.2230. A break through 1.2130 will alter this scenario.
