The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.5920 indicating a possible decline. However, a breakdown of these levels will enable the reaching of the upper limit of the channel in the point 1.6060.
Technical indicators do not provide clear signals but as the resistance level remains unbroken, the assumption of a decline is relevant. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Proceeding from previous events the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5920 with 1st objectives at 1.5990 and 1.6020 levels. If the level 1.5900 is passed through, the proposed scenario will be cancelled.
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