The spot rate is currently testing the intermediate resistance of its medium term bullish channel in the point 1.5910 indicating a prospect decline. However, a breakdown of these levels will enable to reach the upper limit of channel in the point 1.5990.
Technical indicators provide signals for SELL-deals confirming the possibility of the decline that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a volatility decline and the imminence of a violent movement.
Proceeding from the previous situation, the market indicates a bullish opportunity, as soon as the spot rate will has broken its resistance in the point 1.5910 with the levels 1.5970 and 1.5990 as its first objectives. A breakdown in the point 1.5890 is expected to reverse this scenario.
