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High Turnover Euro Capitulation

Published 07/13/2015, 01:15 PM
Updated 07/09/2023, 06:31 AM

Talking Points

EUR/USD: Daily Volume

Charts Created using Marketscope – Prepared by Kristian Kerr

  • EUR/USD continues to trade in a sideways to lower range
  • Well above average volume spikes at recent lows warn of a possible near-term downside capitulation
  • The contraction in daily OBV suggests a directional spike is looming
  • A close back over 1.1240 on above average volume is needed to turn the outlook positive again on the euro

USD/JPY: Daily Volume

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY has come under steady pressure over the past few weeks
  • However, volume has also declined during this time which suggests the decline is only a correction against the primary trend
  • The pickup in daily OBV is a concern
  • A close under 120.30 on above average volume would turn us negative on the pair

GBP/USD: Daily Volume

Charts Created using Marketscope – Prepared by Kristian Kerr

  • GBP/USD has come under steady pressure these past few weeks
  • Daily volume has also declined during this time which is not indicative of a broader downside resumption
  • However, the sharp drop in daily OBV is a concern
  • A daily close back over 1.5575 on above average volume is needed to turn the outlook positive on the pound again

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

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