The Weekly Volume Report: Euro Volume Surges

05/04/2015 9:00 am EST

Focus: CURRENCIES

Kristian Kerr

Chief Technical Strategist, Forex Capital Markets LLC



Kristian Kerr, of DailyFX.com, technically studies the daily volume charts of three currency pairs from last week given that the euro saw highest volume in years and to zero in on the way the US dollar rallied against the Japanese yen. He also suggests levels to watch for support moving forward.


Talking Points

  • Euro sees highest volume in years
  • USD/JPY volume starts to rise supporting advance

Daily Volume Chart: EUR/USD

chart
Charts Created using Marketscope—Prepared by Kristian Kerr
Click to Enlarge

Talking Points

  • EUR/USD traded at its highest level in over two-months this past week
  • FXCM volume rose to its highest level in years over the last couple of days, which is supportive of the advance
  • Daily OBV touched its highest level since early January
  • A close under 1.0860 on above average volume is needed to turn the outlook negative on the euro

Daily Volume Chart: USD/JPY

chart
Charts Created using Marketscope—Prepared by Kristian Kerr
Click to Enlarge

Talking Points

  • USD/JPY touched its lowest level in over a month before rebounding sharply last week
  • The uptick in volume over the past few days is positive
  • A divergence in daily OBV is also potentially positive for the exchange rate
  • A close under 118.00 on above average volume would turn us negative on the exchange rate

Daily Volume Chart: USD/CAD

chart
Charts Created using Marketscope—Prepared by Kristian Kerr
Click to Enlarge

Talking Points

  • USD/CAD fell to its lowest level in three months this past week
  • The general rise in volume during this decline is supportive of the downtrend
  • The sharp decline in daily OBV is also supportive
  • A daily close above 1.2300 on above average volume is needed to turn the outlook more positive for funds

By Kristian Kerr, Senior Currency Strategist, DailyFX.com

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