💡In case you didn’t know, we use one of the most comprehensive technical tools on a daily basis for our technical analysis. I’m talking about tools from Hawkeye Traders which has several technical trading tools to measure volume and gauge trend direction. Market direction becomes much clearer when you add Hawkeye’s Volume indicator to your analysis which enables you to see when professional buyers/sellers are getting in the market.
📊 USDCAD | Trading Scenario [Volume]
📌 Let’s start our technical analysis using Hawkeye Traders’ Volume, Heatmap, and Trend + Stops in the monthly chart. Stop losses are placed around 1.3648 and 1.3754 regions. Furthermore, if we take a look at the volume measure, there is no evidence of any professional selling nor buying activity. In the long-term, the market seems neutral and offers no direction. However…
📌If we move to the weekly chart, professional ‘buying’ volume moves heavily to the downside. At the same time, market participants seem to have their stop-loss positions around two key levels: 1.3206/1.3040. Now, short-sellers know where exactly to aim during the next week.
📌The mentioned advance can be achieved if in 3 days the Bank of Canada does not cut interest rates (actual 1.75%) and governor Stephen Poloz ‘double-down’ with a neutral to a slightly hawkish narrative as he discusses the future of the economy in Canada.
To learn more about Hawkeye Software and Volume Analysis CLICK HERE