The spot rate is currently testing the upper limit of its medium term bearish channel in 107.80 and is expected to initiate a decline. However, a breakdown of these levels will reveal significant potential and initiate a bullish trend.
Technical indicators provide signals for Sell-deals confirming the assumption of a decline that is expected to take place in the nearest future. 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 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. A breakdown in 107.60 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com
