The spot rate is currently testing the intermediate support of its medium term bullish channel in 1.5820 indicating a possible rebound. However a breakdown of these levels will entail a return to its lower limit to 1.5700.
Technical indicators do not provide clears signals but until that the support is not broken the assumption of a rebound 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 indicates a bullish opportunity on the levels of 1.5820 with 1st objectives seen at 1.5880 and 1.5900 levels. In case the level 1.5800 has been passed through, the proposed scenario will be reversed.
