The spot rate is currently testing the lower limit of its medium term bearish channel in the point 1.5650 indicating a possibilty of a rebound. However, a breakdown of these levels will reveal significant potential entailing a more violent movement of the bearish channel.
Technical indicators provide signals for BUY-deals confirming the possibility of a rebound that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the beginning of the violent movement.
Proceeding from the previous events, the market indicates a bullish opportunity at the level 1.5650 with its 1st objectives 1.5710 and 1.5730. A breakdown of the 1.5630 level will cancel this scenario.
