The spot rate has broken the intermediate support of its medium term bearish channel at 1.2150 leading to acceleration. A pull back to these levels is expected before reaching the lower limit of its channel to 1.2020.
Technical indicators provide buy-signals and approaching oversell zone supporting the assumption of a pull back. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to the previous events the market will provide a bearish opportunity at the level of 1.2150 with the 1st objective at 1.2090 and then at 1.2070. A break through 1.2170 will alter this scenario.
