The spot rate is currently testing the upper limit of its medium term bullish channel at 1.6170 and seems to initiate a decline. However a break though these levels will free significant potential and initiate a bullish trend.
Technical indicators provide buy-signals but are approaching the overbuy zone suggesting a decline. 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 indicate a bullish opportunity as soon as the spot rate has broken its resistance at 1.6170 with the 1st objective of 1.6230, and then of 1.6250. A break though 1.6150 will invalidate this scenario.
Performed by Albert Fitoussi, Analytical expert
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