The spot rate has broken the intermediate resistance of its medium term bearish channel in 1.3160 resuting in acceleration. A pull back on these levels is expected before the resumption of the bullish mood and reaching the upper border of this channel in the point 1.3290.
Technical indicators provide sellers signals confirming a possible pull back in the nearest future. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of violent movement.
According to previous events, the market indicates a bullish opportunity at levels of 1.3160 with 1st objectives seen at 1.3220 and 1.3240 levels. In case the level 1.3140 is passed through, the prospect scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
