Talking Points
- EUR/USD volume figures unsupportive of recent decline
- USD/JPY OBV divergence warning sign of a tired trend
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Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD recorded a new low for the year on Monday before rebounding off 1.2250
- Weakening volume since mid-October calls into question the strength of the downtrend
- Persistent divergence in daily OBV also a concern
- A move over 1.2470 on above average volume will shift attention higher
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY recorded a new 7-year high earlier this week
- General rise in volume since November is supportive of the uptrend
- However, OBV divergence over past few weeks is a sign of fatigue in trend
- A close under 117.40 on above average volume would turn us negative on USD/JPY
Daily Volume Chart: USD/CHF
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/CHF traded at its highest level since May 2015 earlier this week before ecountering resistance just above .9800
- Declining volume since early October is not supportive of the recent advance
- A persistent divergence in OBV is also unsupportive of recent gains
- A daily close under .9600 on above average volume would turn attention lower
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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
