Now the spot rate is testing the upper limit of its medium term bearish channel at 1.5670 and is probable to descend. Still a puncture of these levels will provide a potential and initiate a violent bullish trend.
Technical indicators provide buy-signals but approaching overbuy zone supporting the assumption of a decline. 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 provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5670 with the 1st objective at 1.5730 and then at 1.5750. A break through 1.5650 will invalidate this scenario.
