The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5720 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide sell-signals supporting the assumption of a decline in a short term. 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 1.5720 with the 1st objective at 1.5780 and then at 1.5800. A break through 1.5700 will invalidate this scenario.
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