🎯 Top Volume Profile Levels to Trade This Week on EUR/USD & AUD/USD

Hey everyone, it’s Dale here. In this video, I’ll show you the strongest Volume Profile levels to trade this week, and we’ll focus on EUR/USD and AUD/USD. So, let’s get to it.

What you see before you is the NinjaTrader 8 platform and my custom-made Volume Profile and VWAP indicators. You are looking at the EUR/USD chart, and it is a 30-minute chart. Here, I have three levels that I would like to talk about. So, let’s first talk about the strong supports. The first one is this one. It is a support that formed today, and it is at 1.1575. This support is based on a heavy volume zone. Let me show you with the Volume Profile. It is based on this heavy volume zone. It formed on Friday, and then today, there was this steep buying activity commencing from this heavy volume zone. So, this means that quite possibly, there are strong buyers here, and those buyers are likely to defend this place. So, if there is a pullback, then this should work as a support, and the price should move upwards from there.

Okay, this is the center of the heavy volume zone. The reason I want to trade from the center of this heavy volume zone, and not from the beginning as I usually do, is because there is a nice confluence here. The confluence is a price action confluence, and it is here. Check out those two reactions. They were reacting to this level in the past. That means that this was a resistance, and now, when the price blew past that resistance, it turned into a support. Okay, this is a price action setup that confirms this Volume Profile setup, and that’s why I want to trade from there. Also, a third reason is that we have a beautiful and huge Fair Value Gap here, which also adds strength to the level. Our level is almost at the beginning of the Fair Value Gap. The beginning of the Fair Value Gap is here. Our level is a little bit higher, but I still think it aligns nicely. All right, so that’s the first support that I want to trade from at 1.1575.

The second support is at 1.1512. That’s here. Now, the reason behind this, let me move the profile a bit, is that there was a strong rejection of lower prices here. This is the rejection, right? The price went downwards and suddenly turned and went aggressively upwards. Now, when you see a rejection like this, you want to see a significant volume cluster somewhere close to the place where the price turned. In this case, it was here, right? So, this is the significant volume cluster that is pointing us to the place where buyers stepped in and started to buy. This is the important place within that rejection. If the price hits this level, then buyers from here should defend this place again because clearly, it was important for them in the past. So, they should push the price upwards from there again. What I also like about this level, and what adds strength to it, is this massive Fair Value Gap, which begins exactly at our level here. Okay, so that’s the second support at 1.1512.

Now, there’s also a resistance on EUR/USD. Let me show you. That resistance is based on the same setup as I showed you here, that rejection setup, because here we had a rejection of lower prices. Here, we had a rejection of higher prices. That means buyers were pushing the price up, then heavy volumes were traded here, and sellers took over. So, this is a rejection of higher prices, right? In this case, we’ll be taking a short from the beginning of the heavy volume cluster. This is the volume cluster. The scenario is the same, only the setup is reversed, because here we are looking to take a short again. What we have here, and what adds additional strength to the level, is this Fair Value Gap, which in this scenario begins here, right? Because this is a bearish Fair Value Gap, so it begins here exactly at our short level, which is at 1.1635, at the beginning of the Fair Value Gap as well as at the beginning of this volume cluster, which formed in this significant area. Okay, so yeah, that’s what I’m looking to trade on EUR/USD, those three levels. And let me now switch to AUD/USD.

So, here is AUD/USD. Again, I will talk about three levels here, two supports and one resistance. Let’s start with this support, which is at 0.7050. This one is based on a heavy volume zone. It is similar to what you saw on EUR/USD, by the way. It’s based on this heavy volume zone, which formed in this rotation on Friday. From there, there was this strong buying activity. So, this is telling us that buyers were active here. Possibly, those buyers were building up their long positions here. And when the price hits this level, I think that there should be a reaction, right? This level is the beginning of this heavy volume zone. Also, you can notice that we have this Fair Value Gap here. The beginning of the Fair Value Gap is here. Our level is a little bit above it, just to align with the heavy volumes, right? So, when the price hits this level at 0.7050, I expect a reaction because of this. Okay, it is a similar scenario as on EUR/USD.

Now, you can also notice that if you take a look at this profile, that’s the Volume Profile that shows how volumes were distributed throughout the whole previous week. You can notice that this was the weekly Point of Control. That means the heaviest volumes in the previous week were traded here, and it aligns with our level. That means that it adds strength to it. Okay. Now let’s talk about the second support. This support is at 0.6960. If I move the profile like this, you can see that there were heavy volumes traded in this place right before the price started to move aggressively upwards. This is telling us that buyers were quite possibly entering their long positions here, and then when they were done, they manipulated the price to move up. So, if the price makes it to this level, it’s likely that the buyers from here will want to defend this place, which was clearly important for them in the past, and they’ll want to push the price upwards from there again. Okay. And with this level, there’s also a nice confluence with this Fair Value Gap, right? In this bullish scenario, the Fair Value Gap begins here, exactly at our level at 0.6960. Okay, so those are the reasons why I’m looking to trade from this support, and I don’t really mind waiting, even if it takes a couple of days, a week, or two weeks. I’ll still be waiting here with a limit order, and I’ll take that trade.

Now, what remains is that resistance, which is at 0.7104. I need to move the chart a little bit to the left like this so we can see the reasoning behind it. Let me show you why I like this level. As I was saying, resistance is here at 0.7104, and it is based on this steep sell-off, which occurred more or less a week ago. If you look at how the volumes are distributed in this sell-off, you can see that there were a couple of significant volume clusters here. There was this one, there was this one, and there was this one. The price already reacted to this one. It already reacted to this one. But this one still remains untested. That means that if the price reaches this place, I want to take a short from there because I expect a reaction. What the volumes are telling us here is that sellers were active here, adding to their short positions as they were pushing the price down. When the price hits the volume cluster, it’s likely that the sellers will want to defend this place because they were active here before. They placed a lot of their short orders there, so they should be active here again. And that’s why the price should react there.

So, that’s the Volume Profile setup. In addition to that, we have a Fair Value Gap. This small one and then the bigger one. When they are so close to each other, I look at them as if this was one big Fair Value Gap. In this bearish scenario, the Fair Value Gap begins here. Okay? So, that adds strength to the level. An additional thing that adds strength to the level is this. Because the price made a sharp rejection here, that means that in the past, this was a support. When the price blew past the level, support turned into resistance. That’s an old price action setup, and it’s very effective when you combine it with other setups like the Volume Profile setup and also the Fair Value Gap setup. Okay, so those are the reasons why I want to go short from there. So, now I have limit orders on all those levels, and I’m just waiting for the levels to get hit.

All right, so that’s about it, guys. If you want to learn more about Volume Profile trading, then you want to head to my website, which is at trader-dale.com. If you click Trading Course and Tools, then there you can browse my trading education and custom-made indicators. All right, so that’s about it. Thanks for watching the video, and I’ll see you next time. Until then, happy trading.

Now, before I wrap the video up, I’d like to announce the winner of a contest we had last time. The prize of the contest was my custom-made Volume Profile and VWAP indicators for the TradingView platform. And right now, on your screen, you see the name of the person who won the contest. So, congratulations to the winner. What I’ll do next is another contest for next week. The only thing that you need to do to participate in this contest is leave a comment below this video, which I’ll publish on YouTube, and next week, I’ll randomly pick one person to win this set of custom-made indicators. So, that’s about that. Thanks for watching the video, and I’ll be looking forward to seeing you next time. Until then, happy trading.