Everyone is sleeping on the real Euro risk right now

[Marcus Vance 10]

Ngl, reading all these mainstream takes about EUR/USD dropping four weeks straight because of Fed tightening and French politics feels like everyone is just echoing the same script. DBS and the usual suspects keep telling us systemic risk is totally contained, but honestly, that sounds way too comfortable. When the consensus is this relaxed about a major currency sliding, my contrarian alarm bells start ringing. Everyone is so busy chasing the US dollar hype and panicking over headline noise that they are ignoring what happens if the ECB actually has to blink harder than expected. Sure, the charts look ugly and the bears are feasting on shorts, but is this steady decline really just a simple risk shift, or are we sleepwalking into a massive liquidity trap while people focus on the wrong drama?

Tags: forex, trading, eurusd, macro

 

[ArthurByte]

Man, absolutely spot on. While everyone else is busy chasing noise on the lower timeframes, EURUSD is literally sitting right on a daily bullish OB and stacking up some massive liquidity below. I'm just waiting for price to sweep that last 1.0720 low into the FVG before I load up my longs. Don't let these bears trap you, we're about to see an aggressive expansion right back to the highs once the institutional money steps in.

 

[Zakami Ng]

@ArthurByte I hear you on the daily order block, but I’m looking at the RSI on the 4H and it’s showing a pretty clear bearish divergence while we’re tapping these levels. I wouldn't be so quick to load up the boat just yet. If that MACD doesn't flip bullish on the daily soon, that liquidity sweep might just turn into a full-blown breakdown instead of a bounce. Tread carefully, man.