EURNZD strong daily demand level at 1.89. Long bias

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Supply and demand imbalances are the driving forces behind price movements in the Forex market. By identifying these key zones or imbalances, traders can anticipate high-probability reversal or continuation setups. Today, we’ll analyze the EURNZD cross pair, which has recently formed a strong demand imbalance at $1.89—the most significant impulse in months.

The Power of Supply & Demand Imbalances

Supply and demand trading revolves around identifying areas where price has made a strong, impulsive move (demand or supply zone) and then waiting for a retracement into that zone for a potential reversal or continuation.

Key Characteristics of a Strong Imbalance:

✅ Extended Range Candles (ERC): Strong, wide-bodied candles indicate institutional buying/selling.
✅ Strong Imbalance: A clear shift in market structure after a strong rally or drop.
✅ Fresh Zone: The imbalance has not been tested yet or has only been tested once.

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