Talking Points
- OBV divergence potential positive for EUR
- Overall volume picture remains supportive for USD/JPY
- GBP/USD sees steady rise in turnover as Scotland vote looms
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD traded at its lowest level since July of last year this week
- Daily volume has been in a steady rise since July which bolsters the medium-term downtrend
- OBV, however, is sporting a minor divergence on the daily and is a potential reversal signal
- However, dramatic increase in volume on a move through 1.3010 is needed to confirm that a more serious counter-trend move is underway
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY touched its highest level in almost six years this week
- A steady rise in volume has accompanied the move higher since July
- The dramatic rise in On-Balance-Volume through the January highs is futher supportive
- Volume decline over past few days as spot has reached new highs is a potential mear-term negative as exchange rate beginning to show signs of becoming overbought
- Price move under 106.00on above average volume, however, would force a re-think of the broader positve bias
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD fell to its lowest level since November of last year this week past week
- Substantial volume rise over past few weeks bolsters decline
- New yearly highs in OBV this week is also supportive of the downtrend
- A daily close over 1.6305 on above average volume is needed to shift near-term bias higher
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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
