Market Manipulation: How Passive Orders Drive EUR/USD

Market manipulation often sounds like a mysterious force. Yet, when broken down, it simply refers to how large participants—banks, institutions, or liquidity providers—operate with passive limit orders to quietly fulfill massive positions. These players avoid moving the market too quickly, choosing instead to let aggressive orders come to them. Since only direct market orders are reflected in recorded volume, their true intentions remain hidden. Tools like the Volume Terminal, however, help traders uncover these subtle shifts.

One clear example occurred in August 2022 when EUR/USD buyers were consistently absorbed by a passive seller. Despite aggressive buying pressure, price failed to rally. Around midday, when buyers weakened above the Daily Fair Price (DFP), the passive seller turned aggressive—triggering a sharp market collapse.

Market Manipulation: How Passive Orders Drive EUR/USD

In another August setup, passive sellers kept moving their sell limits lower as EUR/USD declined. Indicators like cy75 showed green candles—suggesting buyers in control—but price slid downward regardless. This discrepancy revealed buyer absorption at play, ending in an inevitable downside break.

Later that month, buyers initially appeared in control, yet a sudden flush of stop-loss orders told a different story. Passive buying orders at daily lows triggered a classic stop hunt. Once weak buyers were removed, the market swiftly reversed upward, exposing the true bullish intent.

Perhaps the most striking example was July’s session. Passive sellers absorbed buyers early in Asia, capping any upward momentum. As the market dropped, sellers gained confidence. But just before London opened, a sharp reversal flushed out weak shorts. With positions fulfilled, the passive seller unleashed full aggression—causing an instant collapse.

These cases highlight how passive participants manipulate flows, using absorption and stop hunts to disguise their moves. For traders, learning to spot these patterns is key. With the right tools, one can see beyond surface-level price action and align with the market’s true direction.

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