Euro Weekly Chart Bear Trap Review




I believe the Euro is not as dead as many may think. One way to check are the positions of the commercial and speculator futures traders. The speculators act just like the public does, as they are the trend chasers, price speculation is all that is on their minds. Adding shorts to a perceived bearish decline is the worst way to trade, as you would be digging a deeper and deeper bear trap.  This is what contrarians rely on,  as they know that the herd betting in one direction can never win.

We could see a sudden Euro bull attack, triggering all those buy stops above present prices. This would  instantly convert all the bearish players into bullish players, closing off a nice bear trap in the process. 

This could be a Primary degree bottom so any bullish phase will take some time to play out.  I use late 2015 as my bottom, which was the tail end of a diagonal decline. This inversely matches the US dollar very well.  We also have a higher low which is a sign of a potential start to another bullish phase. 

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