Friday, March 27, 2015

The Weekly Volume Report: Next Volume Surge Key For USD Direction




Talking Points



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Daily Volume Chart: EUR/USD


The Weekly Volume Report: Next Volume Surge Key For USD Direction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • EUR/USD traded to its highest level in three weeks this past week


  • Volume has fallen off significantly from the levels seen last week which suggests this strength is likely part of some broader correction


  • A modest rise in daily OBV over the past couple of weeks favors the broader downtrend


  • A close below 1.0760 on above average volume is needed to signal that broader downside forces are beginning to re-assert


Daily Volume Chart: USD/JPY


The Weekly Volume Report: Next Volume Surge Key For USD Direction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • USD/JPY fell to its lowest level in over a month this past week


  • A weakening volume trend during this recent decline suggests the recent action is only a correction within a broader uptrend


  • However, more aggressive weakness in daily OBV is a cause for concern


  • A close under 118.00 on above average volume would turn us negative on the exchange rate


Daily Volume Chart: GBP/USD


The Weekly Volume Report: Next Volume Surge Key For USD Direction


Charts Created using Marketscope – Prepared by Kristian Kerr



  • GBP/USD has traded in a tight consolidation this past week below 1.5000


  • The rise in volume over the past couple of weeks during the consolidation suggest the pair might be basing


  • However, the lack of advance in the daily OBV supports the broader decline


  • A daily close above 1.5000 on above average volume is needed to turn the outlook more positive for the pound


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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: Next Volume Surge Key For USD Direction

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