The spot rate is presently testing the upper limit of its medium term bullish channel in 1.6000 and is likely to initiate a decline. However, if these levels are passed through, the revealed potential will result in more violent movement of a bullish trend.
Technical indicators provides buyers signals and approaching the overbuy zone supporting the assumptions of 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 as soon as the spot rate will has broken its resistance in 1.6000 with 1st objectives 1.6060 and1.6080. In case the level 1.5980 is passed through, the proposed scenario will be invalidated.
