The spot rate is currently testing the intermediate resistance of its medium term bullish channel at 1.5940 suggesting a decline. However, a break through these levels will allow it to reach the upper limit of its channel at 1.6080.
Technical indicators do not provide clear signals but until that the resistance is not broken the assumption of a decline is most likely. 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 will indicate a bullish opportunity as soon as the spot rate has broken though its resistance at 1.5940 with the 1st objective of 1.6010 and then of 1.6030. A break through 1.5910 will change this scenario.
