The spot rate is at the moment testing the upper limit of its medium term bullish channel at 1.5780 and seems to initiate a decline. Still, a break through these levels will release good potential and initiate a more violent bullish trend.

Technical indicators provide buy-signals but approching to overbuy zone supporting the assumption of 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 provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5780 with the 1st objective at 1.5850 and then at 1.5870. A break through 1.5760 will invalidate this scenario.

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Performed by Analytical expert: Albert Fitoussi
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