Technical Market Overview:
Another lower low was made overnight at the level of 1.2786 as the coronavirus pandemic continues. The market is trading in a new descending channel in oversold conditions, so some kind of bounce is possible. The overall corrective cycle had been very aggressive so far and the recent breakout from the main channel (marked in brown) does not look good for bulls. The next target for bears is seen at the level of 1.2823 and 1.2786. The immediate technical resistance is seen at the level of 1.2848.
Weekly Pivot Points:
WR3 - 1.3258
WR2 - 1.3289
WR1 - 1.3204
Weekly Pivot - 1.2969
WS1 - 1.2881
WS2 - 1.2656
WS3 - 1.2581
Trading Recommendations:
The best strategy for current market conditions is to trade with the larger timeframe trend, which is up, so all downward market moves will be treated as local corrections in the uptrend. The key long-term technical support is seen at the level of 1.2231 - 1.2224 and the key long-term technical resistance is located at the level of 1.3512.
