The spot rate is presenlty testing the upper limit of its medium term bearish channel in 107.80 and is likley to decline. However, a breakdown of these levels will reveal significant potential and initiate a bullish trend.
Technical indicators provide buyers signals but as long as the resistance level remains unbroken, the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of 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 seen as first objectives. A breakdown in 107.60 will reverse this scenario.
The material has been provided by Instaforex Company - instaforex.com
