The spot rate is presently testing the intermediate resistance of its medium term bullish channel in 1.5930 and is likley to decline. However, a breakdown of these levels will enable to reach the upper limit of the channel in the point 1.6080.
Technical indicators provide signals for Buy-deals but as the resistance remains unbroken, the pair is most likely. Bollinger bands have significantly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Proceeding from the previous situation, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5930 with 1st objectives seen at 1.5990 and 1.6020 levels. A breakdown in 1.5910 will cancel this scenario.
