After a strong decline price is at extreme levels. Now price is testing a strong structure.
RSI is extremely oversold and MACD also, this is called "extreme divergence". Price should make a correction to release this divergence very soon.
Looking at price history we had a rally at this levels.
I saw this scenario many times. News in this case act as catalyst to release the divergence. Last days we had this scenario on AUDNZD and EURGBP.
This potential trade is RISKY because the reaction to the news is unexpected. I rely only on my own experience observing price at this levels and before the news.
Best regards.
RSI is extremely oversold and MACD also, this is called "extreme divergence". Price should make a correction to release this divergence very soon.
Looking at price history we had a rally at this levels.
I saw this scenario many times. News in this case act as catalyst to release the divergence. Last days we had this scenario on AUDNZD and EURGBP.
This potential trade is RISKY because the reaction to the news is unexpected. I rely only on my own experience observing price at this levels and before the news.
Best regards.