The spot rate is currently testing the intermediate resistance of its medium term bullish channel in 1.5980 and is expected to decline. However, a breakdown of these levels will allow to reach the upper limit of its channel in the point 1.6080.
Technical indicators provide signals for Buy-deals but as the resistance remains 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 indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5980 with 1.6040 and 1.6060 seen as first objectives. A breakdown in 1.5960 will reverse this scenario.
The material has been provided by Instaforex Company - instaforex.com
