The spot rate approached the intermediate resistance of its medium term bearish channel at 94.80 and seems to initiate a decline. However, a break through these levels will release a good potential and will enable to reach the upper limit of this one to 95.80.
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 the previous events, the market will provide a bullish opportunity as soon as the spot rate is broken through its resistance of 94.80 with the 1st objective at 95.40 and then at 95.60. A breakthrough 94.60 will invalidate this scenario.
