The spot rate is currently testing the upper limit of its medium term bearish channel at 97.40 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators provide sell-signals and 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 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 has broken through its resistance of 97.40 with the 1st objective at 98.00 and then at 98.20. A break through 97.20 will invalidate this scenario

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Performed by Analytical expert: Albert Fitoussi
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