The spot rate is presently testing the upper limit of the medium term bearish channel in the point 1.5910 and is likely to initiate a decline. However, if these levels are broken down, the significant potential will be revealed and a bullish trend will be initiated.
Technical indicators provide signals for SELL-deals supporting the assumption of a decline that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the beginning 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 in 1.5910 with its 1st objectives seen at 1.597 and 1.5990 levels. A breakdown in the point 1.5890 will reverse this scenario.
