The spot rate is currently testing the upper limit of its medium term bearish channel at 100.70 and seems to initiate a decline. However, a break through these levels will release a good potential and initiate a violent bullish trend.
Technical indicators do not provide clears signals but approaching overbuy zone may support the decline. Bollinger bands are much discarded as a result of a strong increase 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 breaks through its resistance of 100.70 with the 1st objective at 101.30 and then at 101.50. A break through 100.50 will invalidate this scenario.

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Performed by Analytical expert: Albert Fitoussi
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