The Weekly Volume Report: Move Higher In Cable Lacking Volume

Talking Points

• Volume dissipates in euro rally
• Cable advanced not generating strong turnover

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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

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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