Talking Points
- EUR/USD volume supporting the trend
- Volume picture remains supportive for USD/JPY
- GBP/USD slides on weak volumes
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD fell to its lowest level since in over two years this week
- Daily volume has been in a steady rise since July which bolsters the medium-term downtrend
- Recent daily volume has been above average which further supports the downtrend
- On-Balance-Volume (OBV) remains supportive
- A move through 1.2750 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 broke above the psychologically significant 110.00 area this week to trade at its highest level since August of 2008
- A steady rise in volume has accompanied the move higher since July
- The steady rise in On-Balance-Volume has also been quite supportive
- Price move under 108.00 on above average volume, however, would force a re-think of the broader positve bias
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD has fallen to new lows for the year this week
- Steady volume rise since July is supportive of decline
- New lows in daily OBV also supportive of trend
- Below average volume of late a possible positive divergence
- However, A daily close over 1.6250 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