The spot rate is currently testing the intermediate resistance of its medium term bearish channel in 1.3170 indicating a possible decline. However, a breakdown of these levels would allow to reach the its upper limit at level 1.3280.
Technical indicators do not provide clear signals but as the resistance is unbroken, the assumption of a decline remains relevant. 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 as soon as the spot rate will has broken its resistance in 1.3170 with 1.3240 and 1.3260 seen as first objectives. A breakdown in the point 1.3150 will reverse this scenario.
The material has been provided by Instaforex Company - instaforex.com
