At the moment the spot rate is testing the upper limit of its medium term bearish channel in the point 1.5890 and is expected to decline. However, a breakdown of these levels will reveal significant potential resulting in the beginning of a bullish trend.
Technical indicators do not provide clear signals but as long as the resistance is unbroken, the assumption of a decline is relevant. Bollinger bands have greatly tightened in recent days indicating a decline in volatility and the imminence of a violent movement.
Proceeding from the previous events, the market indicates a bullish mood as soon as the spot rate will has broken its resistance in 1.5890 with 1.5950 and 1.5970 seen as first objectives. If the 1.5870 levels is passed through, the prospect scenario will be reversed.
