The Weekly Volume Report: Euro Rises But Volume Diminishes

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