Trade Idea Everyone is calling for the EURUSD death spiral, but are you sure?

[Michael Vance 82]

I keep seeing these posts everywhere about how EURUSD is dead in the water because of the "fragile political situation" and some lackluster data. It feels like every time I open the forums, the bears are out in full force citing the 20DMA as if it’s some magical brick wall we’ll never breach. Honestly, the amount of fear being priced in right now makes me think we are setting up for a massive squeeze.

We all know the institutional desks love to lean into the "weak Euro" narrative right when the retail crowd gets fully onboard with the short side. Sure, the momentum indicators look rough on the daily, but since when does the market actually care about those when it wants to hunt liquidity? The fact that we held that 1.12 handle after the gap-lower tells me there is actually some decent support sitting there, waiting to trap all the guys trying to scalp the downside. Ngl, the consensus view is getting so crowded that I’m genuinely worried about being short here. Is everyone really convinced that this move is exhausted, or are we just ignoring the potential for a massive short-covering rally?

 

[LeoSterling]

Inverse is printing. Everyone screaming parity is just exit liquidity for the whales before the face ripper candle. I'm long and ready to get rekt or make it.