Talking Points
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Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD recorded a new low close for the year this week
- Declining volume during recent consolidation favors a downside resumption, but turnover needs to pick up on weakness to confirm this thinking
- A rather stagnant daily OBV line also favors an eventual downside resolution
- A close above 1.1450 on above average volume will turn attention higher
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY has traded in a very tight consolidation over the past couple of weeks
- The lack of volume during the push higher at the start of the month raises concerns that the consolidation is not yet finished
- The lack of momentum in daily OBV is also a concern
- A close under 118.00 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 traded at its highest level in almost a month this week
- Volume has been in general decline since the start of year, but the lack of turnover on the recent rise suggests move is likely only corrective
- A modest move off the recent lows in daily OBV also favors a correction scenario
- 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
