The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2370 and seems to initiate a decline. However, a break through these levels will release a good potential and initiate a violent bullish trend.
Technical indicators provide buy signals but approach an overbuy zone supporting the assumption of a decline. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to previous events, the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2370 with the 1st objective at 1.2430 and then at 1.2450. A breakthrough 1.2350 will invalidate this scenario.
