The Weekly Volume Report: Trends To Resume?

Talking Points

• EUR/USD recovery lacking volume
• USD/JPY advances with little turnover

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Daily Volume Chart: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD remains in consolidation mode below 1.1500
• Declining volume during the recent rise suggests the advance is likely only corrective
• A lack of momentum in daily OBV also favors an eventual downside resolution
• A close above 1.1535 on above average volume will turn attention higher

Daily Volume Chart: USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

• USD/JPY has come under steady downside pressure over the past week
• The lack of volume during the recent push higher raises concerns that consolidation is not yet finished
• The persistent decline in daily OBV over past few weeks is also 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: GBP/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• GBP/USD traded at its highest level in almost two months earlier this week
• The lack of volume during the recent advance does suggest the recovery is likely only corrective
• A weakening daily OBV also suggests recent action is only corrective
• A daily close above 1.5500 on above average volume would turn us positive on Cable

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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