The spot rate is currently testing the upper limit of its medium term bullish channel at 1.6180 and seems to initiate a decline. However a break of these levels will release good potential and initiate a more violent bullish trend.
Technical indicators provide signals to buyers 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 show bullish opportunity as soon as the spot rate has broken its resistance at 1.6180 with the 1st objective of 1.6240, and then of 1.6260. A break through 1.6160 will change the plan.
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