At the moment the spot rate is testing the intermediate support of its medium term bullish channel in 1.6150 and is expected to rebound. However, a breakdown of these levels will lead to a return to its lower limit in 1.6120.
Technical indicators do not provide clear signals but as the support level is not broken, the rebound is most likely to take place. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity at the level 1.6150 with a 1st objectives seen at 1.6210 and 1.6230 levels. In case the level 1.6120 is passed through, the prospect scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
