The spot rate is presently testing the upper limit of its medium term bullish channel in 1.6160 and is likley to decline. However, a breakdown of these levels will reveal significant potential resulting in the more violent bullish trend.
Technical indicators provide sellers signals and evolvement in the overbuy zone confirms the assumption of a decline. Bollinger bands are much discarded due to the strong increase of these days. The situation is expected to stabilize soon.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.6160 with 1.6220 and 1.6240 seen as first objectives. A breakdown in 1.6140 will cancel this scenario.
