The spot rate is currently testing the lower limit of its medium term bearish channel in 104.50 and is likely to rebound. However a breakdown of these levels will reveal a significant potential entailing a bearish channel more violent.
Technical indicators provide signals for Sell-deals, but evolving in the oversell zone confims the assumption of a rebound that is expected to take place 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 indicates a bullish opportunity at levels of 104.50 with 105.10 and 105.30 seen as first objectives. A In case the level 104.30 is passed through, the proposed scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
