The spot rate is presently testing the upper limit of its medium term bullish channel in 1.6100 and is likely to initiate a decline. However, in case these levels are passed through, the significant potential will be revealed resulting in the beginning of more violent bullish trend.
Technical indicators don't provide clear signals but approaching to the overbuy zone supports the assumption of a decline. Bollinger bands are much discarded due to the strong increase that took place. The situation is expected to stabilize soon.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.6100 with a 1st objectives seen at 1.6160 and 1.6180 levels. In case the level 1.6080 is passed through, the prospect scenario will be invalidated.
The material has been provided by Instaforex Company - instaforex.com
