Presently the spot rate is approching the lower limit of its medium term bearish channel at 104.90 and is likley to rebound. However, a break through this level will trigger a decline and initiate a bearish trend more violent.
Technical indicators provide sellers signals confirming the possiblility that the pair will return to its lower limit in the nearest future. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events the market will provide a bullish opportunity at the level of 104.90 with 1st objectives seen at 105.50 and 105.70 levels. In case of breakdown of level 104.70 the proposed scenario will be invalidated.
The material has been provided by Instaforex Company - instaforex.com
