EURCAD at SUPPLY EURCAD has been consolidating in a Rectangular Pattern since mid-July 2024. Roughly
a 100pip range.
A breakout took place (Consolidation and Nov 23 Swing high) on the last trading day, where Buyers take control and move price 180+ pips in 4 candles.
From a Volume Spread perspective the last 4 candles are of interest.
The First Candle is Green, which signifies average volume, and has a spread of 40 pips.
The Second Candle is also Green with a much larger spread of 89 pips.
The Third Candle is Yellow, which signifies high volume. But it only has a spread of 39 pips.
The Fourth Candle is Green with a spread of only 11 pips.
The VSA is in confirmation of the Rally and the trending candles, but it warns that Sellers
are nearby.
We have to look back to April 21 to spot the Supply Zone, where Sellers last took control at
the price level.
For the coming week, looking for Price Action to respect this Supply Zone and retrace back
into consolidation for a mitigation of the Fresh Demand Zone.
With Price above the 200 MAV and alignment of the 20/50/200 MAV on the HTF, the outlook remains Bullish.
