EUR/USD - volume analysis 6E futures Dec22

Discussion in 'Financial Futures' started by Liberty Market Investment, Nov 9, 2022.

  1. [​IMG]
    Consider the current situation on the EuroDollar eur/usd 6E futures contract. Buying activity pushes the price almost to the maximum of the December contract. November 4 was the most volatile trading day with good total volume and corresponding delta.


    The price ranges of volume support were formed on Friday.

    They are marked on the slide with a wide range of green, keep them in mind when trading.


    0.979 - 0.982 reversal activity of market participants, where many fixed their profitable sales and made new buy deals.


    0.985 - 0.988 support range for buyers, a large imbalance of buying before the range extension above the previous day's high (Thursday).

    Trading scenario №2 - after price correction to this level - watch how hard (volume and imbalance) the buyer defends this level.


    0.997 to 1 - this range of buyer activity, besides the volume component, is psychologically difficult. Because of the round price 1 around which there may be many false movements to test the strength of the traders. Active defense of this range is a trading scenario №1 for buying.


    1.0085 - 1.012 - volumetric resistance level formed in late October in an attempt to extend the range above the highs. This range is highlighted in red on the slide.


    Sell scenario №1 - when RES resistance range is actively defended by sellers [ big trades/ imbalance delta sell / total delta ].


    Sell scenario №2 - in case of an unsuccessful price expansion above the December contract maximum and volume activity of sellers at that moment - it would be quite logical to use weakness of buyers to make a sell deal.