At the moment the spot rate is testing the upper limit of its medium term bullish channel in 1.6150 and is likely to initiate a decline. However, a breakdown of these levels will reveal significant potential and initiate more viloent bullish trend.
Technical indicators provide buyers signals but approaching the overbuy zone confirms the assumptions of a decline. 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 1.6150 with a 1st targets seen at 1.6210 and 1.6230 levels. In case the level 1.6130 is passed through, the prospect scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
