Saad Ullah
This morning's EUR/USD move was brutal. He wasn't alone—many traders got trapped in what looked like a clean breakout, only to watch it collapse minutes later. The charts tell the story of a classic stop hunt, where price teased resistance before snapping back down.
What the Charts Show
Trader B_Trader summed it up: "I believe I'm not the only trader that took this loss this morning." Price pushed toward 1.1570–1.1580, pulling in buyers who thought the breakout was real. It wasn't. EUR/USD rejected hard from the supply zone and dropped fast, hitting stops along the way. The pair knifed down to 1.1545, testing support and leaving long positions bleeding. By the time the dust settled, most retail traders were already out.
This wasn't random. The sharp wicks and quick reversal point to institutional players sweeping liquidity at predictable retail levels. It happened during the London-New York overlap—prime time for these kinds of moves. Recent dollar strength from hawkish Fed signals didn't help EUR bulls either. The setup looked tempting, but the trap was set perfectly.
Takeaways
Wait for confirmation before entering breakouts. Don't put stops where everyone else does. And remember—when something looks too easy, it probably is.
Saad Ullah
