The spot rate is approaching the upper limit of its medium term bearish channel at 1.2360 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy signals but until the resistance is not broken, the assumption of a decline is most likely. 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 1.2360 with the 1st objective at 1.2420 and then at 1.2440. A breakthrough 1.2340 will invalidate this scenario.
