The spot rate is now testing the lower boundary of its medium term bullish channel at 1.6170 suggesting a retracement. Still, a break through this level will trigger a decline and initiate a violent bearish trend.
Technical indicators provide buy-signals, but until 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 the recent events the market will provide a bullish entry at the level of 1.6170 with the 1st objective at 1.6230 and then at 1.6250. A break through 1.6150 will alter this scenario.
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