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Talking Points
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Volume dissipates in euro rally
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Cable advanced not generating strong turnover
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
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EUR/USD traded at its highest level in over three weeks on Friday
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Volume has fallen off during the recent rise suggesting this upside action is likely only corrective
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The lack of momentum in daily OBV also points to a correction rather than a more meaningful reversal
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A close over 1.1040 on above average volume is needed to turn the outlook more positive on the euro
Daily Volume Chart: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
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USD/JPY rebounded off range lows earlier this week
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Below average volume during this consolidation is seen as generally supportive
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Persistent weakness in daily OBV does remains a cause for concern
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A close under 118.00 on above average volume would turn us negative on the exchange rate
Daily Volume Chart: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
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GBP/USD traded at its highest level in over a month this week
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However, the move higher has been on well below average volume which suggests it is only a correction against the primary trend
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The sharp rise in daily OBV is a concern
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A daily close above 1.5200 on above average volume is needed to turn the outlook more positive for 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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