Talking Points
- EUR/USD corrects OBV divergence
- Volume picture remains supportive for USD/JPY
- Dramatic rise on Kei volume on Thursday
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD pierced last year’s low this week to trade at its lowest level since November 2012
- Daily volume has been in a steady rise since July which bolsters the medium-term downtrend
- Recent daily volume, however, remains below average and is a potential signal that the trend is in fatigue
- On-Balance-Volume (OBV) break to new lows support continuation of trend
- A move through 1.2895 on higher than normal volume is needed to confirm that a more serious counter-trend move is underway
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY is in consolidation mode below key long-term trendline resistance near 109.50
- A steady rise in volume has accompanied the move higher since July
- The steady rise in On-Balance-Volume is supportive
- Price move under 107.35 on above average volume, however, would force a re-think of the broader positve bias
Daily Volume Chart: NZD/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- NZD/USD fell to its lowest level in over a year this week
- Steady volume rise since July is supportive of trend
- New lows in daily OBV also supportive of trend
- Dramatic spike in volunme potentially exhaustive
- A daily close over .8080 on above average volume is needed to shift near-term bias higher
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— Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX