The spot rate is currently testing the upper limit of its medium term bearish channel in 1.3290 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend.
Technical indicators provides sellers signals and approaching to the overbuy zone supporting the assumptions of a decline. 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 indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3290 with a 1st objective of 1.3350, then 1.3380. A break in 1.3270 would invalidate this scenario.
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