Thinking about EURUSD and liquidity traps
Got caught yesterday trying to long $EURUSD on what I thought was a decent pullback into a strong support zone, only for it to just chop sideways for hours before dumping. My mistake was assuming a quick bounce on relatively low volume during what felt like a pre-holiday quiet period. I think I got a bit too focused on the technical level and not enough on the broader market context – specifically, the lack of real liquidity to support any significant directional move. It felt like I was trading in a vacuum, which is always a recipe for getting chopped up. It's a good reminder that even the cleanest charts can fail if the underlying market conditions aren't there to back them up. Definitely need to be more mindful of when the institutional money is out to lunch and when it's actively participating.