The EURUSD currency pair is one of the most traded forex crosses in the world, offering deep liquidity and strong trending movements. For traders, understanding supply and demand imbalances is crucial—not only for swing and long-term trading but also for refining intraday and scalping strategies.
Currently, the EURUSD is exhibiting a strong bullish bias, primarily due to a major weekly demand imbalance near 1.05 and a larger yearly demand zone established since 2022. These imbalances are key drivers behind the euro’s strength against the US dollar.
Supply and demand imbalances occur when large institutional orders create zones where price aggressively reverses or accelerates. These zones act as magnet areas, attracting price back for retests or fueling strong breakouts.
1. Weekly Demand Imbalance at 1.05
2. Yearly Demand Imbalance (Since 2022)
While supply and demand zones are critical for swing trading, they also provide high-probability intraday and scalping opportunities.
1. Intraday Trading with Weekly Imbalances
2. Scalping with Imbalance Reactions
Order flow analysis (e.g., aggressive buying pressure after touching the zone) can help scalp 5-minutes or 1-munite charts for quick 10-20 pip moves. Scalpers can watch for liquidity sweeps near the weekly demand zone. A false breakdown below 1.05 followed by a rapid recovery could signal a scalping long opportunity.
Conclusion: Trading EURUSD with Imbalance Zones
By aligning multiple timeframes and respecting supply and demand imbalances, traders can significantly improve their edge in the EURUSD market—whether holding positions for weeks or scalping for pips.