The spot rate is currently testing the intermediate support of its medium term bearish channel at 98.90 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 97.50.
Technical indicators do not provide clears signals but until the resistance is not broken the assumption of a decline is most likely. 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 will provide a bullish opportunity at the level of 98.90 with the 1st objective at 99.50 and then at 99.70. A break through 98.70 will alter this scenario.
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