At the moment the spot rate is testing the intermediate resistance of its medium term bearish channel at 1.2330 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 1.2430.
Technical indicators provide buy-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 provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2330 with the 1st objective at 1.2390 and then at 1.2430. A break through 1.2310 will invalidate this scenario.
