The Weekly Volume Report: Low Turnover Favors Correction
30 Jan 2015 15:00, GMTTalking Points
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Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD has rallied modestly off an 11-year low over the past few days
- Volume on the rise over the past few days has been low suggesting the advance is only corrective
- Daily OBV levels also suggest the recent advance is only corrective
- A close above 1.1450 on above average volume will focus higher
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY remains in consolidation mode below 122.00
- Decline in volume since early December suggests action since then is likely only corrective
- However, the persistent decline in daily OBV over past few weeks is a warning sign that a deeper decline may be unfolding
- A close under 116.35 on above average volume would turn us negative on the exchange rate
Daily Volume Chart: AUD/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- AUD/USD fell to its lowest level in over 5-years this past week
- The lack of volume on recent on the latest decline raises questions about the strength of the downtrend
- However, new lows in daily OBV is supportive of the decline
- A daily close above .8000 on above average volume would turn us positive on the Aussie
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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.