EUR/CAD Volume Profile 📊 and Price action analysis 📋
Hello guys,
in today’s day trading analysis, I would like to focus on EUR/CAD.
There has been a pretty interesting development yesterday.
First, there was a rotation in which heavy volumes were accumulated. You can see those volumes nicely with my Flexible Volume Profile tool.
From this rotation, a strong sell-off started. This tells us, that there were strong institutional sellers building up their Short positions in this rotation.
Those sellers were entering their Shorts there, and then they pushed the price downwards. They placed most of their volumes around 1.4893 – this is where the Volume Profile is the thickest.
This area is important for them, because they placed most of their shorts there. For this reason they will most likely want to defend it when the price comes back in this 1.4893 area again.
This is why I think the zone around 1.4893 will work as a Resistance. Sellers defending this zone should push the price downwards from there again.
Weekly POC
This 1.4893 area is also significant, because it is the Weekly Point Of Control (POC). this means that the heaviest volumes throughout this week were traded at 1.4893.
When there is a Weekly POC from which a strong trend activity starts, then it usually represents a strong area just by itself. Just like in this case.
I hope you guys liked today’s analysis. Let me know your thoughts in the comments below!
Happy trading!
-Dale
in today’s day trading analysis, I would like to focus on EUR/CAD.
There has been a pretty interesting development yesterday.
First, there was a rotation in which heavy volumes were accumulated. You can see those volumes nicely with my Flexible Volume Profile tool.
From this rotation, a strong sell-off started. This tells us, that there were strong institutional sellers building up their Short positions in this rotation.
Those sellers were entering their Shorts there, and then they pushed the price downwards. They placed most of their volumes around 1.4893 – this is where the Volume Profile is the thickest.
This area is important for them, because they placed most of their shorts there. For this reason they will most likely want to defend it when the price comes back in this 1.4893 area again.
This is why I think the zone around 1.4893 will work as a Resistance. Sellers defending this zone should push the price downwards from there again.
Weekly POC
This 1.4893 area is also significant, because it is the Weekly Point Of Control (POC). this means that the heaviest volumes throughout this week were traded at 1.4893.
When there is a Weekly POC from which a strong trend activity starts, then it usually represents a strong area just by itself. Just like in this case.
I hope you guys liked today’s analysis. Let me know your thoughts in the comments below!
Happy trading!
-Dale
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