The spot rate is currently testing the lower limit of its medium term bullish channel at 1.5510 and seems to initiate a rebound. However, a breakthrough these levels will release good potential and initiate a violent bearish trend.
Technical indicators provide buy signals and evolve in oversell zone supporting the assumption of a rebound. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
According to previous events, the market will provide a bullish opportunity at the level of 1.5510 with the 1st objective at 1.5570 and then at 1.5590. A breakthrough 1.5490 will alter this scenario.
