DailyFX.com -
Talking Points
-
EUR/USD volume figures unsupportive of recent decline
-
USD/JPY OBV divergence warning sign of a tired trend
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 recorded a new low for the year on Monday before rebounding off 1.2250
-
Weakening volume since mid-October calls into question the strength of the downtrend
-
Persistent divergence in daily OBV also a concern
-
A move over 1.2470 on above average volume will shift attention higher
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
-
USD/JPY recorded a new 7-year high earlier this week
-
General rise in volume since November is supportive of the uptrend
-
However, OBV divergence over past few weeks is a sign of fatigue in trend
-
A close under 117.40 on above average volume would turn us negative on USD/JPY
Daily Volume Chart: USD/CHF
Charts Created using Marketscope – Prepared by Kristian Kerr
-
USD/CHF traded at its highest level since May 2015 earlier this week before ecountering resistance just above .9800
-
Declining volume since early October is not supportive of the recent advance
-
A persistent divergence in OBV is also unsupportive of recent gains
-
A daily close under .9600 on above average volume would turn attention lower
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.