The spot rate is currently testing the lower limit of its medium term bearish channel in 1.5600 suggesting a rebound. However a break of these levels would free a large potential and entail a bearish channel more violent.
Technical indicators provide buyers signals supporting the assumption of a rebound in the short term. Bollinger bands are much discarded to a result of the strong decline of these days. Stabilization is expected in the short term.
According to previous events, the market indicates a bullish opportunity on the levels of 1.5600 with a 1st objective of 1.5650, then 1.5680. A break in 1.5580 would invalidate this scenario.
Performed by Albert Fitoussi, Analytical expert
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