The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 95.10 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 95.70.
Technical indicators provide buy 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 previous events, the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 95.10 with the 1st objective at 95.70 and then at 95.90. A break through 94.90 will invalidate this scenario.
