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.