The spot rate is currently testing the upper limit of its medium term bullish channel at 1.5990 and seems to initiate a decline. However a break of these levels will free up significant potential and initiate a bullish trend more violent.
Technical indicators don't provide clears signals but are approaching to the overbuy zone suggesting a decline. Bollinger bands are much discarded to a result of the strong increase of these days. Stabilization is expected in the short term.
According to previous events, the market will show a bullish opportunity as soon as the spot rate has broken its resistance at 1.5990 with the 1st objective of 1.6050, then 1.6070. A break through 1.5970 will change this scenario.
