The spot rate is currently testing the upper limit of its medium term bearish channel at 1.3230 and seems to initiate a decline. However a break of these levels will release 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 will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 1.3230 with the 1st objective at 1.3290 and then at 1.3310. A break though 1.3210 will invalidate this scenario.

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Performed by Analytical expert: Albert Fitoussi
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