The spot rate is moving in a medium-term trading range approaching its upper limit in the point 1.5930, indicating a possible decline. However, the breakdown of these levels will reveal a large potential that will initiate the bullish trend.
Technical indicators provide signals for SELL-deals, confirming the assumption of a decline that is expected to take place soon. For the last days Bollinger bands have tightened significantly showing a decline in volatility and the beginning of a violent movement.
Proceeding from the previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in the point 1.5930 with a 1st objective seen at 1.5990 and at 1.6030 levels. If the level 1.5910 is passed through, the scenario will be reversed.
Performed by Albert Fitoussi, Analytical expert
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