The spot rate is currently testing the intermediate support of its medium term bullish channel at 1.2660 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1.2570.

Technical indicators do not provide clear signals but until the support is not broken the assumption of a rebound 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 provide a bullish opportunity at the level of 1.2660 with the 1st objective at 1.2720 and then at 1.2740. A break through 1.2640 will alter this scenario.

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Performed by Analytical expert: Albert Fitoussi
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