The spot rate is currently testing the intermediate support of its medium term bullish channel at 100.60 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 99.40.
Technical indicators do not provide clear signals but are approaching overbuy zone supporting a break of its support. 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 at the level of 100.60 with the 1st objective at 101.20 and then at 101.40. A break through 100.40 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com