new lows are reached on this pair 72.13, and some would say "why would you try to catch falling knife"? Well, there is several reasons for it. Of course that we know that market is selling off risk (CAD), and buying safety (JPY). On top of everything oil is reaching new lows,S&P & Dow are also reaching new lows. This trade is based on premise that people are going to stop and think very carefully about selling more than this level on many markets, even if the news that is coming out is not all that great. That would in our opinion open door for much lower levels, and our trade would be liquidated in a "jiffy":)
If markets stop and think about it before make the next move, our trade makes perfect sense. It would make a great profit if someting good happens on the market. After all, even the selling has it's stoping point.
Slow Stochastic looks tired from pointing lower :)
Stops are placed at 71.60 and target is 73.40
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