The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.2520 and seems to initiate a decline. However, a break through these levels will release good potential and the price will be able to reach the upper limit of this one -1.2610.

Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2520 with the 1st objective at 1.2580 and then at 1.2610. A break through 1.2500 will invalidate this scenario.

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Performed by Analytical expert: Albert Fitoussi
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