The spot rate is currently testing the upper limit of its medium term bearish channel at 1.2970 and seems to initiate a decline. However, a break through these levels will free up significant potential and initiate a bullish trend.
Technical indicators don't give clear signals, but are approaching overbuy zone suggesting a decline.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate will puncture its resistance at 1.2970 with the 1st objective of 1.3040, then of 1.3060. A break through 1.2950 will invalidate this scenario.