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 to 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.
