The spot rate is presently testing the intermediate resistance of its medium term bullish channel at 1.3180 and is likely to decline. However, a breakdown of these levels will release significant potential enabling to reach its upper limit in point 1.3290.
Technical indicators do not provide clear signals but s long as the resistance is not broken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expected to stabilize soon.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.3180 with the 1st targets seen at 1.3240 and 1.3260 levels. Incase the level1.3160 is broken through, the proposed scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
