The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3260 and is expected to decline. However, a breakdown of these levels will reveal significant potential and result in beginning of the bullish trend.
Technical indicators provide sellers signals but as long as the resistance level remains unbroken, the assumption of a decline is 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 1.3260 with a 1st objectives seen at 1.3320 and 1.3340 levels. A breakdown in 1.3240 will invalidate the proposed scenario.
The material has been provided by Instaforex Company - instaforex.com
