During the week the spot rate was evolving between 1.5580 and 1.5690 showing a low volatility. It is testing now the upper limit of this range at 1.5690 suggesting a decline. However, a break through this level would free a large potential and initiate a more violent bullish trend.
Technical indicators do not provide clears signals but approach overbuy zone and until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is at its resistance, for this reason we recommend 2 scenarios: the first one is to buy the spot rate as soon as it breaks through its resistance of 1.5690 with the 1st objective at 1.5750 and then at 1.5770. A breakthrough 1.5670 will invalidate this scenario. The second option is to sell the spot rate on the level of 1.5690 with the 1st objective at 1.5630 and then at 1.5610. A breakthrought 1.5710 will invalidate this scenario.