Long

EURNZD Bullish Reversal from Demand Zone (1H Chart)

✅ 1. Market Context & Structure Analysis

The pair (EUR/NZD) was in a short-term downtrend before forming a higher low, indicating a potential bullish reversal.
A W-shaped structure is visible, suggesting a double bottom around the 1.8960–1.8970 zone.
The price has bounced multiple times from the demand zone (green box), confirming strong buying interest.
The recent price action shows the market respecting structure with a clean impulse–correction–impulse pattern, creating a potential continuation leg.

📍 2. Entry Criteria
Entry Price Range: 1.8960 – 1.8970
Why?
This area coincides with a tested support zone, from where price previously rallied.
The current pullback to this area presents a low-risk buying opportunity.
Candlestick confirmation (e.g., bullish engulfing or pin bar) would further validate the entry.

🔐 3. Stop Loss (Risk Management)
Stop Loss Placement: Below 1.8930
Reasoning:

Keeps SL below the structure low and the demand zone.
If price breaks this level, it invalidates the bullish setup and prevents deeper losses.

🎯 4. Take Profit Levels (Targets)
TP1 -1.9050 Minor resistance / partial booking
TP2 -1.9100 First key resistance zone
TP3 -1.9140 Swing high and strong supply area (red zone)

Risk-to-Reward (R:R): ~1:2.5 to 1:3+

You can trail your stop as price moves toward these levels.

📊 5. Technical Confluences
✅ Support Zone: Price bounced multiple times from 1.8960
✅ Bullish Market Structure: Higher highs and higher lows are forming
✅ Chart Pattern: Double bottom / W-pattern breakout potential
✅ Fibonacci (optional): The zone may also align with a 61.8% retracement (not shown but often observed)

⚙️ 6. Trade Management Strategy
🔄 Partial Exit: Book 50% profits at TP1
⏫ Trail SL: Move SL to entry after TP1 hit to make trade risk-free
🔚 Full Exit: At TP3 or if strong bearish reversal candle forms near resistance

⚠️ 7. Risk Disclaimer & Notes

Avoid overleveraging. Only risk 1–2% of your capital.
Reconfirm the trade setup during the London or early NY session for better volatility.
News events (like RBNZ or ECB speeches) could increase volatility — always check the economic calendar before entry.

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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

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