The spot rate is presently testing the intermediate resistance of its medium term bearish channel in the point 1.5650 indicating a possible decline. However, a breakdown of these levels will enable to reach the upper limit of its channel in the point 1.5810.
Technical indicators do not provide clear signals but as long as the resistance remains unbroken, the pair is likely to decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Considering the previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5650 with 1.5710 and 1.5730 seen as its first objectives. If the level 1.5630 is passed through, the prospect scenario will be reversed.
