is in rapid decline towards a very interesting area in our view. Looking at the last time the pair traded in the 0.788-0.789 zone, we can see the imbalance of the market was bullish
, with a highly impulsive bull wave which followed, comprised of 10 buying hours barely interrupted by a couple of small selling pauses. This communicates to us that there may be some big buyers waiting around at that price zone, which also allings perfectly with the 61.8 retracement. Looking at our oscilators, we can see stochastic
is already communicating some potetntial for a shift in momentum from bearish
, while RSI
is still oversold and as such may soon commincate a similar shift. With all that being said, the main appeal for such a trade is our risk:reward, which as outlined in the chart can easily be at a 10 to 1 ratio, meaning our probablity of success on such a trade can be very small and yet still give us fantastic returns in the long run.