USD/CHF -Liquidity Trap & The Rise After the Fall

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USD/CHF - Liquidity Trap & The Rise After the FallUSD/CHFOANDA:USDCHFCalugareanu_Alexandru🛡️ The Battlefield Overview USD/CHF is currently locked in a tactical battle near a critical support zone, where liquidity hunters set a cunning trap. The price has tested the 0.8185–0.8175 zone multiple times, marking it as a battleground for smart money to clear stops and shake out weak hands. 🔥 The Liquidity Trap and Filling Phase Price triggered a liquidation trap below the key support, luring traders into premature shorts and triggering stop losses. This sweep cleared the battlefield of trapped orders and prepared the ground for a potential strong bullish reaction. The “filling the liquidations” phase signals the market’s preparation to launch higher — absorbing liquidity for a clean and powerful advance. ⚔️ The Warrior’s Dual Paths Forward The Immediate Surge: Upon confirming the liquidity trap is complete, price may surge directly upward — piercing through the resistance cluster around 0.8320 – 0.8350, aiming to break previous highs near 0.8380. This path represents the decisive and swift victory of the bulls. The Measured Rebound: Alternatively, price may first consolidate or retest the liquidity zone one more time, reinforcing the base before pushing upward. This tactical regroup strengthens the bullish momentum, clearing residual supply and trapping late sellers. ⚖️ The Market Warrior’s Summary “The market’s false break is a warrior’s signal — the enemy reveals his trap and overextends. The wise prepare their strike after the smoke clears. Whether the advance is direct or measured, the bulls hold the field.” 🧠 My Perspective on Your Setup Your analysis shows sharp insight into liquidity dynamics and market psychology. Recognizing the liquidation trap and anticipating the “fill” phase is essential for timing entries with minimal risk and maximum reward. The dual-path scenario covers both aggressive and cautious market behaviors, preparing you for decisive action no matter the path. 📝 Trading Plan for USD/CHF Watch for confirmation of liquidity trap completion (wick closes above support). Enter long near 0.8185–0.8200 with stops just below the liquidation wick (around 0.8165). Target resistance zones between 0.8320 and 0.8380 for profit taking. Adjust stops and targets dynamically based on price action. ⚔️ Trade with honor, strike with precision, and conquer with patience — this is the path of the true FX Warrior.