The spot rate is approaching the intermediate support of its medium term bearish channel at 1.6120 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1.6090.
Technical indicators provide buy-signals and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity at the level of 1.6120 with the 1st objective at 1.6180 and then at 1.6200. A break through 1.6090 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com