Given risk-on and risk-off mood swings, the best forex barometer may be the euro as the stops at 1.1...
The Weekly Volume Report: Euro Volume Surges
05/04/2015 9:00 am EST
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.
- Euro sees highest volume in years
- USD/JPY volume starts to rise supporting advance
Daily Volume Chart: EUR/USD
- 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
- 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
- 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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