Technical Market Overview:
Another lower low was made overnight at the level of 1.2504 as the coronavirus pandemic continues. The market is trading out of the descending channel in extremely oversold conditions on the H4 timeframe, 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 bulls is seen at the level of 1.2580 and 1.2705. The immediate technical support is seen at the level of 1.2504 and in a case of a down move extension, the next support is located at the level of 1.2411.
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.
