The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.2160 and seems to initiate a decline. However, a break through these levels will release a good potential and will make the upper limit of this one to 1.2250 available.
Technical indicators provide sell signals but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have greatly tightened recently showing a decline in volatility and the imminence of a violent movement.
Taking into account the previous events, the market will provide a bullish opportunity as soon as the spot rate is broken through its resistance of 1.2160 with the 1st objective at 1.2220 and then at 1.2240. A break through 1.2140 will invalidate this scenario.
