The spot rate is currently testing the upper limit of its medium term bearish channel at 97.20 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators do not provide clears 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 97.20 with the 1st objective at 97.80 and then at 98.00. A break through 97.00 will invalidate this scenario.
