The spot rate is currently testing the upper limit of its medium term bearish channel in 107.80 and is likely to decline. However, a breakdown of these levels will reveal significant potential and initiate a more violent bullish trend .
Technical indicators provide signals for Sell-deals and approaching to the overbuy zone supports the assumption of a decline. Bollinger bands are much discarded due to the recent strong increase. The situation is expected to stabilize soon.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 107.80 with 108.40 and 108.60 considered as first targets. In case the level 107.60 is passed though, the proposed scenario will be invalidated.
The material has been provided by Instaforex Company - instaforex.com
