Talking Points
- Cable breaks to 5-month low
- Euro threatens 1.1100
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD came under further pressure this past week to test the 1.1100 area
- Well below average volume on the recent decline does raise some doubts about the strength of the decline
- However, a generally weak OBV is constructive for further weaknnss
- A close above 1.1325 on above average volume would turn us positive on the rate
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY came under renewed pressure this past week, but held well above the lows from last month
- Volume has been generally below average during the week which is unsupportive of the downtrend
- Daily OBV is also well above last week’s low and a move under the extremes of last week is really needed to set off a more important leg lower
- A close back over 121.65 on above average volume would turn us positive on the pair
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD fell to its lowest level since May this past week
- Below average volume on the decline does make us question the move
- However, the sharp decline in daily OBV has been a good leading indicator for recent weakness
- A daily close over 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
