At the moment the spot rate is testing the intermediate resistance of its medium term bullish channel in 1.6300 and is likely to decline. However a breakdown of these levels will enable to reach its upper limit in 1.6360.
Technical indicators provide sellers signals and evolvement in the overbuy zone but as the resistance is unbroken, the decline is most likely to take place. Bollinger bands are much discarded due to the recent strong increase. The situation is expecte to stabilize soon.
Proceeding from previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.6300 with 1st objectives seen at 1.6360 and 1.6380 levels. A breakdown in 1.6280 will reverse this scenario.
Performed by Albert Fitoussi, Analytical expert
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