The spot rate evolves in a medium term bullish channel and declined a lot these last days. It is testing for the third time the lower limit of this one at 1.5490 and tries a rebound but a break of these levels will free a large potential and initiate a violent bearish channel.
Technical indicators provide sell signals suggesting a break of its support but are approaching oversell zone supporting the assumption of a rebound. Moreover, the volume increase confirms that there will be a violent movement soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and confirm that we can expect a violent movement.
We can operate in two ways: the first one is to try a short and make a "sell-stop" on the spot rate if it break its support at 1.5490 with a target of 1.5430 or the second one is to try a buy on the levels of 1.5490 with a target of 1.5550.