From TradingView · · 1m 10s
EUR/USD long setup targets demand zone bounce
A trader spots a counter-trend opportunity in EUR/USD at 1.1527, aiming for up to 4:1 reward-to-risk despite bearish backdrop.
In brief
A trader spots a counter-trend opportunity in EUR/USD at 1.1527, aiming for up to 4:1 reward-to-risk despite bearish backdrop. Even in bearish markets, demand zones can offer high reward-to-risk long setups if you wait for structure confirmation instead of chasing. Originally reported by TradingView.
Don't chase into support
EUR/USD is bearish long-term, but selling at 1.1542 without confirmation means chasing price into a support level. The 15-minute selloff already hit demand.
“selling at 1.1542 without a 5m bearish re-break is chasing into support”
Local structure shows recovery signs
The 5-minute chart swept the local low and is now attempting to recover. This creates a potential high reward-to-risk trade from the demand zone.
Entry at 1.15271 with tight stop
The trade enters at 1.15271 with a stop loss at 1.15060, risking just 21 pips. First target sits at 1.15720 for a 2.13:1 reward-to-risk ratio.
“Entry: 1.15271 Stop Loss: 1.15060 Target 1: 1.15720 (1:2.13 R:R)”
Second target offers 4:1 payoff
Target 2 reaches 1.16130, delivering a 4.07:1 reward-to-risk ratio. This ambitious upside assumes the demand zone triggers a meaningful bounce.
“Target 2: 1.16130 (1:4.07 R:R)”
FOMC decision looms Wednesday
No new macro edge exists before the Fed announcement. Holding any USD pair through the Fed decision, projections, and press conference adds separate event risk.
“Holding a USD pair through that event is a separate risk decision, not a technical setup.”
At a glance
Even in bearish markets, demand zones can offer high reward-to-risk long setups if you wait for structure confirmation instead of chasing.
