The spot rate broke the intermediate resistance of its medium term bearish channel at 106.20 leading to an acceleration. A pull back on these levels is expected before reaching the upper limit of its channel at 106.90.
Technical indicators provide buy-signals supporting the assumption of a bullish movement in the short term. Bollinger bands have greatly tightened in recent days showing a plunge in volatility and the imminence of a violent movement.
According to the recent events the market will provide a bullish opportunity at the level of 106.20 with the 1st objective at 106.90 and then at 107.10. A break through 106.00 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com
