Talking Points
- 2nd highest volume day of the year this week in EUR/USD
- Decline accelerates in USD/JPY, but volume does not
- Daily OBV divergence in GBP/USD a concern
Get real time volume on your charts for free. Click HERE
Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD has recovered further over the past week to trade at its highest level in almost a month
- Daily volume has been in a steady rise since July which bolsters the medium-term downtrend
- However, Wednesday’s push higher on the 2nd highest volume day of the year is a concern
- On-Balance-Volume (OBV) levels suggest recent action is only corrective
- A move under 1.2600 on above average volume is needed signal a downside resumption
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY fell to its lowest level in over a month this past week
- The lack of volume during the recent decline suggests the move is likely only corrective
- OBV levels remain supportive of the broader uptrend
- A close over 107.00 on good volume is needed to signal a possible upside resumption
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD fell to a new low for the year this past week
- However, unlike in other European currencies pairs volume has not risen materially with the trend
- A divergence on the daily OBV is also concerning
- A daily close over 1.6165 on above average volume would shift focus higher
To receive Kristian’s analysis directly via email, please SIGN UP HERE.
— Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX