The spot rate is testing the upper limit of its medium term bearish channel at 107.70 and seems to initiate a decline. Nevertheless, a puncture of these levels will free up considerable potential and initiate a 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 the strong descend these days. Stabilization is expected in the short term.
In accord to the recent events the market should indicate a bullish opportunity as soon as the spot rate has punctured its resistance at 107.70 with the 1st objective of 108.30, then of 108.50. A break through 107.50 will alter the scenario.
The material has been provided by Instaforex Company - instaforex.com
