USD/CAD VWAP Market Analysis

As a follow-up from the quick VWAP presentation I thought to provide you with a VWAP analysis post to understand in some degree the current structure of a market with this tool. In this particular happy post I will share my observations on USD/CAD. First and foremost it is evermore a good idea to take a good look at the current plain macro structure of a market. That said, here is the Yearly perspective:

2016-07-24_21-20-59usdcadyearly

At the first glance, we can observe an one-time-framing higher behavior which occurs since 3-4 Years. The market broke the high from 2009 and seem to heading to the highs from 2000 in my opinion. However, the market is trading below this Year’s open.

With that in mind, we can now move forward to the VWAP analysis. Firstly, I like to take a look at the Yearly VWAP structure on a weekly bars chart. Looking at this chart, we can see various things. The yearly developing slope is clearly to the downside. The market is trading in the previous Year’s value close area in a quite balanced behavior and currently we are testing the balance area high. In my opinion the next possible destination is the developing Yearly VWAP which is somewhat confluent with the previous Year’s value area high close level. Anyway, firstly we have to break above this current balanced structure.

2016-07-24_21-42-25usdcadweekly

Well, looking at the daily chart, we can identify a one-time-framing higher behavior which occurs since 5 days. I guess the last candle’s reaction should be seen as an attempt to “trap” sellers with stops above Friday’s high in which the market can blow through next week.

2016-07-24_21-55-59caddaily

Currently the market trading above the Quarter’s developing value high. Additionally we broke above the previous Quarter’s value area high close level. The value area low close level from a previous Quarter is confluent with the mentioned Yearly developing VWAP area.

2016-07-24_22-08-10cadquarter

The monthly VWAP perspective is quite the same, so we are directly moving forward to the weekly perspective. I’m quite interested at the area around the weekly VPOC which is confluent with the VWAP close level.

2016-07-24_22-14-52weeklyperspective

That’s it! I hope this post is helpful for you. I will post all possible updates about this market on our lovely trading forum if you are interested. Anyway, I wish you a great week in whichever market and please let me know if you have any questions. Last but not least, make sure to subscribe to this blog via email to keep updated about new posts!