The spot rate is currently testing the lower limit of its medium term bullish channel at 1.5505 and seems to initiate a rebound. However, a break through these levels will release good potential and initiate a violent bearish trend. Technical indicators do not provide clear 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 previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5505 with the 1st objective at 1.5570 and then at 1.5590. A break through 1.5480 will invalidate this plan.
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