The spot rate is now testing the intermediate support of its medium term bearish channel at 96.40 suggesting a retracement. However, a break through this level will trigger a decline to the lower limit – 95.80.
Technical indicators do not provide clear signals but untill the support is not broken there can be 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 96.40 with the 1st objective at 97.20 and then at 97.40. A break through 96.20 will alter this scenario.
