The CADUSD pair is interesting to me.
Let’s take a look at some charts.
The first chart is the CAD Futures: Continuous Contract in Front.
I have the anchored VWAP from the April 21 low sitting at .82075.
I anticipate a bounce from this level, however, I am short-term bearish below that level.
The anchored VWAP represents the average price paid per contract since that time period.
If the price is above the VWAP, the average long position holder is profitable and feels good about their trade and more likely to add than sell.
If the price is below the VWAP, the average long position holder is losing money and is more likely to sell than add to their position.
This next chart is the USDCAD showing the purple VWAP from the same April 21 date.
Also showing is a TD 9 count on the Daily chart suggesting a 1-4 day pullback,
If the price can get back above the purple VWAP, I anticipate moving into the previous supply highlighted by the grey rectangle.
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