The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2300 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators do not provide clear 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 1.2300 with the 1st objective at 1.2360 and then at 1.2380. A break through 1.2280 will invalidate this scenario.
