The spot rate is moving in a medium term trading range approaching the intermediate support level in the point 1.5810 indicating a possible rebound. However, a breakdown of these levels would entail a return to the lower limit of its trading range to 1.5650.
Technical indicators provide signals for BUY-deals but the fact that they are approaching the overbuy zone can be considered as a sign of possible decline. During the last days the Bollinger bands have significantly tightened showing a decline in volatility and the imminence of a violent movement.
Proceeding from the previous events, the market indicates a bullish opportunity at the level 1.5810 with the 1st objective seen at 1.5870 and further at 1.5890 levels. A breakdown of the 1.5790 level will reverse the prospective scenario.
