Talking Points
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Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD traded to its highest level in three weeks this past week
- Volume has fallen off significantly from the levels seen last week which suggests this strength is likely part of some broader correction
- A modest rise in daily OBV over the past couple of weeks favors the broader downtrend
- A close below 1.0760 on above average volume is needed to signal that broader downside forces are beginning to re-assert
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY fell to its lowest level in over a month this past week
- A weakening volume trend during this recent decline suggests the recent action is only a correction within a broader uptrend
- However, more aggressive weakness in daily OBV is a cause for concern
- A close under 118.00 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 has traded in a tight consolidation this past week below 1.5000
- The rise in volume over the past couple of weeks during the consolidation suggest the pair might be basing
- However, the lack of advance in the daily OBV supports the broader decline
- A daily close above 1.5000 on above average volume is needed to turn the outlook more positive for the pound
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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
