The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 107.10 suggesting a decline. However, a break through this level will allow reaching the upper limit of its channel at 108.00.
Technical indicators provide sell-signals and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 107.10 with the 1st objective of 107.70 and then of 108.00. A break through 106.90 will change the plan.
The material has been provided by Instaforex Company - instaforex.com
