The spot rate is currently testing the upper limit of its medium term bearish channel in 1.5740 and is expected to decline further. However, in case these levels are broken down, the significant potential will be revealed resulting int he beginning of a bullish trend.
Technical indicators do not provide clear signals but as long as the resistance has not been passed through, 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.
Proceeding from the previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance level 1.5740 with 1.5800 and 1.5820 seen as first targets. If the level 1.5720 is broken down, the proposed scenario will be reversed.
