The spot rate broke the intermediate resistance of its medium term bearish channel at 1.5800 which led to an acceleration. A pull back at these levels is expected before a resumption of bullish tendency which will reach the upper limit of its channel at 1.5920.
Technical indicators provide sell-signals and are approaching to the overbuy zone suggesting a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity at the levels of 1.5800 with the 1st objective of 1.5860, then 1.5880. A break through 1.5780 will invalidate this scenario.
