Talking Points
- Euro rises but volume diminishes
- New highs for the year in Cable
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD traded to its highest level in almost three months this past week
- FXCM volume dropped noticeably during this advance which suggests the recovery is waning
- A divergence in daily OBV is also a potential negative
- A close under 1.1135 on above average volume is needed to turn the outlook negative on the euro
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY remains in a narrow sideways to lower range
- Volume remains below average giving little clarity, but it probably supports an eventual upside resolution
- Minor divergences in daily OBV are a potential positive for the exchange rate
- 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 recorded a new high for the year this past week
- The general rise in volume since April is seen as supportive for the pound
- The move in daily OBV to its highest level in several months is also supportive of the pound
- A daily close below 1.5500 on above average volume is needed to turn the outlook negative on 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
