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Giving madrid 3.05 odds against arsenal is what am not too convinced about because I don't know the criteria used in giving this odds by the bookmakers because even if you say that it's because of recent matches that the two sides has played arsenal has not been convincing in their games so giving arsenal 2.38 against Madrid is not in the best interest of arsenal because arsenal will be going into this game next week with a false confidence that will likely hunt them, but for we as gambler's it's an opportunity for us to make some money from this game because I will definitely bet on this game because madrid is going to win this game
This is mainly because of their home advantage I assume. I don't know what other reasons the bookmakers could take into consideration here, but this is the most plausible that comes to my mind and not to forget that Arsenal is still 2nd in the Premier League, the best league in the world and so far they lost only one game in the Premier League at home.
But you can see how quickly a result was added to Real Madrid's bad performances against Valencia. Nobody can now argue that it was La Liga and Real Madrid has a more important focus. That is not true and you could ask Ancelotti whether he is ok with giving the La Liga title to Barcelona because they lose against teams like Valencia in the Bernabeu.
The rivalry in La Liga doesn't allow that Barcelona wins the title easily. The Madrid fans will freak out about it.
3.05 seemed a bit high to me, but the performance against Valencia gave some more insight into the shape that Real Madrid is in.