The Weekly Volume Report: High Turnover Euro Capitulation

Talking Points

• EUR/USD volume spikes again
• USD/JPY turnover continues to decline

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Daily Volume Chart: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD continues to trade in a sideways to lower range
• Well above average volume spikes at recent lows warn of a possible near-term downside capitulation
• The contraction in daily OBV suggests a directional spike is looming
• A close back over 1.1240 on above average volume is needed to turn the outlook positive again on the euro

Daily Volume Chart: USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

• USD/JPY has come under steady pressure over the past few weeks
• However, volume has also declined during this time which suggests the decline is only a correction against the primary trend
• The pickup in daily OBV is a concern
• A close under 120.30 on above average volume would turn us negative on the pair

Daily Volume Chart: GBP/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• GBP/USD has come under steady pressure these past few weeks
• Daily volume has also declined during this time which is not indicative of a broader downside resumption
• However, the sharp drop in daily OBV is a concern
• A daily close back over 1.5575 on above average volume is needed to turn the outlook positive on the pound again

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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