The spot rate is presently testing the intermediate resistance of its medium term bullish channel at 1.6260 and is about to decline. However, a breakdown of these levels will release large potential enabling to reach its upper limit in 1,6320.
Technical indicators do not provide clear signals but as long as the resistance level remains unbroken, the assumption of a decline is most probable. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement
Considering previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.6260 with 1.6320 and 1.6340 seen as first targets. In case the level 1.6240 is passed thorugh, the proposed scenarion will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
