In our 24/06 research report we discussed the potential for downside risk for the pair. Since we have seen close to a 500-point decline. Today, the pair appears extended to the downside, offering an opportunity to take a buy/long position at current levels (0.7316) or lower.
Key Reward-To-Risk Drivers Include:
- Test and downside over-extension of linear regression channel.
- Overshooting of 50/61.8% Fibonacci Retracement Levels
- Extended vs 21-EMA.
- 7-RSI oversold however not printing a lower low vs prior swing low.
- Candle structure: long lower tails, suggesting possible early buying interest.
Buy At Current Levels (0.7314) or Lower: Range from 0.7295 to 0.7314
Target Range: 0.7380 to 0.7405