The spot rate is currently testing the intermediate support of its medium term bullish channel at 1.2650 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1.2570.
Technical indicators do not provide clear signals but until the support is not broken the assumption of a rebound 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 1.2650 with the 1st objective at 1.2710 and then at 1.2730. A break through 1.2630 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com