The spot rate is currently testing the upper limit of its medium term bearish channel at 1.3240 and seems to initiate a decline. However a break of these levels will free up significant potential and initiate a bullish trend.
Technical indicators provide buy-signals but until the resistance is not broken the assumption of a decline is most likely. 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 have broken its resistance at 1.3240 with the 1st objective of 1.3300, and then of 1.3320. A break through 1.3220 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com
