Talking Points
- Volume dissipates in euro rally
- Cable advanced not generating strong turnover
Get real time volume on your charts for free. Click HERE
Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD traded at its highest level in over three weeks on Friday
- Volume has fallen off during the recent rise suggesting this upside action is likely only corrective
- The lack of momentum in daily OBV also points to a correction rather than a more meaningful reversal
- A close over 1.1040 on above average volume is needed to turn the outlook more positive on the euro
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY rebounded off range lows earlier this week
- Below average volume during this consolidation is seen as generally supportive
- Persistent weakness in daily OBV does remains 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 traded at its highest level in over a month this week
- However, the move higher has been on well below average volume which suggests it is only a correction against the primary trend
- The sharp rise in daily OBV is a concern
- A daily close above 1.5200 on above average volume is needed to turn the outlook more positive for cable
To receive Kristian’s analysis directly via email, please SIGN UP HERE.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX
