The spot rate is presently testing the intermediate resistance of its medium term bearish channel at 106.10 and is about to decline. However, a breakdown of these levels will release significant potential enabling to reach its upper limit in the point 107,10.
Technical indicators do not provide clear signals but as long as the resistance level is not broken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong recent decline. The situation is expected to stabilize soon.
Proceeding from previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 106,10 with 106,7 and 106,90 seen as first objectives. In case the level 105.90 is passed through, the proposed scenario will be invalidated.
The material has been provided by Instaforex Company - instaforex.com
