Friday, January 30, 2015

The Weekly Volume Report: Low Turnover Favors Correction




Talking Points



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Daily Volume Chart: EUR/USD


The Weekly Volume Report: Low Turnover Favors Correction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • EUR/USD has rallied modestly off an 11-year low over the past few days


  • Volume on the rise over the past few days has been low suggesting the advance is only corrective


  • Daily OBV levels also suggest the recent advance is only corrective


  • A close above 1.1450 on above average volume will focus higher


Daily Volume Chart: USD/JPY


The Weekly Volume Report: Low Turnover Favors Correction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • USD/JPY remains in consolidation mode below 122.00


  • Decline in volume since early December suggests action since then is likely only corrective


  • However, the persistent decline in daily OBV over past few weeks is a warning sign that a deeper decline may be unfolding


  • A close under 116.35 on above average volume would turn us negative on the exchange rate


Daily Volume Chart: AUD/USD


The Weekly Volume Report: Low Turnover Favors Correction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • AUD/USD fell to its lowest level in over 5-years this past week


  • The lack of volume on recent on the latest decline raises questions about the strength of the downtrend


  • However, new lows in daily OBV is supportive of the decline


  • A daily close above .8000 on above average volume would turn us positive on the Aussie


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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





The Weekly Volume Report: Low Turnover Favors Correction

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