The spot rate is presently testing the intermediate support of its medium term bearish channel in 105.80 suggesting a rebound. However, a breakdown of these levels will entail decline to its lower limit in 103.50.
Technical indicators do not provide clear signals but approching to the oversell zone and as the support is unbroken, the assumption of a rebound is true. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expected to stabilize soon.
According to previous events, the market indicates a bullish opportunity at level 105.80 with 106.40 and 106.60 seen as first targets. A breakdown in 105.60 will reverse this scenario.
The material has been provided by Instaforex Company - instaforex.com
