At the moment the spot rate is testing the upper limit of its medium term bearish channel in.6210 and is expected to decline. However, a breakdown of these levels will reveal significant potential resulting in a violent bullish trend.
Technical indicators provide buy-signals but as long as the resistance level is unbroken, the assumption of a decline is relevant. 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 will provide a bullish opportunity as soon as the spot rate has broken its resistance level 1.6210 with 1st targets seen at 1.6270 and 1.6290 level. A break through 1.6190 will cancel this scenario.
The material has been provided by Instaforex Company - instaforex.com
