The spot rate is currently testing the intermediate support of its medium term bearish channel at 96.50 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 95.90.
Technical indicators do not provide clear signals but until the support is not broken the idea of a retrace is most likely . Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
In accord to the previous events the market will provide a bullish opportunity at the level of 96.50 with the 1st objective at 97.10 and then at 97.30. A break through 96.30 will alter this scenario.
