The Weekly Volume Report: Downside Resolution in the Euro?
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Talking Points
EUR/USD low volume consolidation favors trend continuation
USD/JPY OBV continues to support the uptrend
GBP/USD OBV remains a negative
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Daily Volume Chart: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
EUR/USD remains in consolidation mode above the year-to-date low at 1.2356
Below average daily volume levels during this consolidation favor an eventual downside resolution
Recent turn down of daily On-Balance-Volume (OBV) a potential negative
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 traded to a new 7-year high this week just shy of 119.00
Uptick in daily volume figures at new high is supportive of the advance
OBV continues to support the trend
A close under 116.80 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 traded at a new low for the year this week
Daily volume figures have been below trend and not supportive of the push to new lows
However, accompanying new lows in OBV is seen as supportive of the downtrend
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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