The spot rate is presently testing the upper limit of its medium term bearish channel in 1.5890 and is likely to initiate a decline. However, a breakdown of these levels will reveal significant potential starting a bullish trend.
Technical indicators provide signals for Buy-deals but approaching to the overbuy zone confirms the assumptions of a decline. Bollinger bands are much discarded due to the strong increase that took place these days. The situation is likely to stabilize soon.
According to the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5890 with 1.5950 and 1.5970 seen as first objectives. A breakdown of the 1.5870 level will reverse this scenario.
