The Weekly Volume Report: Volume Spikes With Spot

DailyFX.com -

Talking Points

• Another high volume reversal in AUD/USD

• Capitulation high in the euro?

Get real time volume on your charts for free. Click HERE

Daily Volume Chart: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD underwent extreme volatility this past week as spot traded in a five big figure plus range

• A sharp spike in volume on the move to 1.1700 warns of a potential upside capitulation

• The divergence in daily OBV on the spike higher relative to the May high is also negative

• A close below 1.1000 on above average volume is needed

Daily Volume Chart: USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

• USD/JPY fell to its lowest level more than 7-months this past week before recovering the bulk of the week’s losses

• The increase in volume on the spike lower and recover warns that capitulation low of some kind was traced out

• Unlike in the euro, USD/JPY did not record an OBV divergence against its most recent low which is a potential negative

• However, a close above 123.00 on above average volume is needed to confirm a more important shift higher in the exchange rate

Daily Volume Chart: AUD/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• AUD/USD traded down to its lowest level in over six years this past week

• A trio of above average volume spikes on recen wide range days suggests the exchange rate is nearing an exhaustion point

• However, a strongly trending daily OBV line suggests the downtrend remains firmly entrenched

• A daily close over .7300 on above average volume is needed to turn the outlook more positive

To receive Kristian’s analysis directly via email, please SIGN UP HERE.

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.