The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5540 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy-signals but until the resistance is not broken the assumption of a decline is most probable. Bollinger bands have greatly tightened these days pointing at decline in volatility and the imminence of a violent movement.
According to previous events the market will offer a bullish prospect as soon as the spot rate has broken through its resistance of 1.5540 with the 1st objective at 1.5600 and then at 1.5620. A break through 1.5520 will invalidate this scenario.
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