Talking Points
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD underwent extreme volatility this past week as spot traded in a five big figure plus range
- A sharp spike in volume on the move to 1.1700 warns of a potential upside capitulation
- The divergence in daily OBV on the spike higher relative to the May high is also negative
- A close below 1.1000 on above average volume is needed
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY fell to its lowest level more than 7-months this past week before recovering the bulk of the week’s losses
- The increase in volume on the spike lower and recover warns that capitulation low of some kind was traced out
- Unlike in the euro, USD/JPY did not record an OBV divergence against its most recent low which is a potential negative
- However, a close above 123.00 on above average volume is needed to confirm a more important shift higher in the exchange rate
Daily Volume Chart: AUD/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- AUD/USD traded down to its lowest level in over six years this past week
- A trio of above average volume spikes on recen wide range days suggests the exchange rate is nearing an exhaustion point
- However, a strongly trending daily OBV line suggests the downtrend remains firmly entrenched
- A daily close over .7300 on above average volume is needed to turn the outlook more positive
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--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX