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The Weekly Volume Report: Divergence Galore!

The Weekly Volume Report: Divergence Galore!

2014-12-12 15:45:00
Kristian Kerr, Sr. Currency Strategist
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Talking Points

  • EUR/USD volume figures unsupportive of recent decline
  • USD/JPY OBV divergence warning sign of a tired trend

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Daily Volume Chart: EUR/USD

The Weekly Volume Report: Divergence Galore!

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

The Weekly Volume Report: Divergence Galore!

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

The Weekly Volume Report: Divergence Galore!

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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