The spot rate is presently testing the intermediate resistance of its medium term bullish channel in 1.5990 indicating a possible decline. However, a breakdown of these levels will enable to reach the upper limit of its channel in tjhe point 1.6090.
Technical indicators do not provide clear signals but as the resistance level remains unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong decline that took place these days. The situation is expected to become stable in the nearest future.
Considering previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5990 with 1.6050 and 1.6070 seen as first objectives. A breakdown in 1.5970 will cancel this scenario.
