The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.5790 indicating a possible decline. However, a breakdown of these levels will enable the reaching of the upper limit of the channel in the level 1.5990.
Technical indicators provide signals for Sell-deals confirming the fact that a decline is likely to take place in the nearest future. For the last days Bollinger bands have greatly tightened showing a decline in volatility and the imminence of a violent movement.
Considering the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance level 1.5790 with 1.5850 and 1.5870 seen as its first objectives. In case the level 1.5770 is broke down, the proposed scenario will be reversed.
