The Weekly Volume Report: What Does OBV Know?

Talking Points

• USD/JPY trades at near two month high
• Cable daily OBV declines sharply

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Daily Volume Chart: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD came under steady downside pressure over the past week
• Below average volume on the move lower remains a concern and is unsupportive of a broader decline
• However, the downside persistence in daily OBV does hint at a further decline
• A close back over 1.1100 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 traded at its highest level in almost two months this week
• However, low volume on the move higher is unsupportive of a broader advance
• The lack of momentum in daily OBV is also a concern
• A close under 122.00 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 remains in consolidation mode below 1.5700
• Well above average volume over the past few days signals a directional move is looming
• A strongly trending daily OBV line warns of an eventual downside resolution
• A daily close back over 1.5700 on above average volume would turn us positive 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