Talking Points
- EUR/USD low volume consolidation a negative
- USD/JPY volume diminishing on recent push higher
- GBP/USD OBV leads the way lower
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD has been in consolidation mode for the past week
- Below average daily volume levels over the past few days points to an eventual downside resumption
- On-Balance-Volume (OBV) is also supportive of the broader downside resumption
- A move over 1.2575 on above average volume is required to shift attention higher
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY broke above 116.00 to trade at its highest level in over 7-years
- Below average daily volume over the past few days is a sign that the trend is nearing fatigue
- However, new highs in OBV continues to support the trend
- A close under 114.65 on above average volume would turn us negative on USD/JPY
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD closed at a new low for 2014 on Thursday
- Daily volume figures have been mixed on the move lower though a solid increase in turnover on the initial break lower on Wednesday is seen as supportive of the trend
- Accompanying new lows in OBV is also supportive
- A daily close back over 1.5800 on above average volume would turn us positive on Cable
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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