EUR/NZD: Volume Profile and Price Action Analysis

Hello guys,

today I would like to have a closer look with you at the EUR/NZD.

There is a really nice case of the “Volume Accumulation Setup” – one of my most favorite trading setups.

It all started on Tuesday. There was a rotation (red rectangle) in which massive volumes got created. You can see the volumes using my Flexible Volume Profile indicator.

At that time it was impossible to tell if something was going on there and if it was Buyers or Sellers getting ready for a big move.

But after the rotation has ended and the price has broken through, it became clear. It was the Sellers!

Strong institutional Sellers were accumulating their Short positions unnoticed in a rotation and then they pushed the price downwards into a sharp sell-off.

EUR/NZD, 30 Minute chart:

A Valuable information

This gives us a valuable information: Sellers placed a lot of their Short positions around 1.6804. This is an important place for them.

If the price makes it there at some point in the future, then those Sellers are likely to defend this place. This means they will start selling and they will try to push the price downwards again.

This is why this area around 1.6804 should work as a strong day trading Resistance.

Weekly Volume Profile

In my yesterday’s article (NZD/CHF analysis), I pointed out that I like to see my trading levels on the Weekly Volume Profile.

This profile gives me the bigger picture. If the level is visible there, then it means it is important for day traders as well as for people who trade the higher time frames.

The picture below shows our 1.6804 level on the Weekly Volume Profile. The nice volume cluster it there is hard to miss!

EUR/NZD, 60 Minute chart

I hope you guy’s liked today’s analysis! Let me know what you think in the comments below!

Happy trading!

-Dale

P.S. Fresh market analysis is posted regularly in the MARKET ANALYSIS section almost every day!

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