The spot rate is currently testing the upper limit of its medium term bullish channel in 1.3390 and seems to initiate a decline. However a break of these levels would free up significant potential and initiate a bullish trend more violent.
Technical indicators provide sellers signals and evolve in overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 1.3390 with a 1st objective of 1.3450, then 1.3480. A break in 1.3370 would invalidate this scenario.
Performed by Albert Fitoussi, Analytical expert
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