Talking Points

• GBP/USD touches 7-month high
• Euro tests May highs

Daily Volume Chart: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD continues to trade in a choppy sideways to higher range
• Below average volume during the advance of the past few weeks suggests the exchange rate is vulnerable to a broader trend resumption
• However, the lack of divergence on daily OBV remains a potential positive
• A close under 1.1065 on above average volume is needed to turn the outlook negative on the euro

Daily Volume Chart: USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

• USD/JPY consolidated above 122.50 this past week
• Low volume during the recent move lower is supportive of the broader trend
• Daily OBV needs to be watched closely on the next advance
• A close under 121.40 on above average volume is needed to turn the picture negative

Daily Volume Chart: GBP/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• GBP/USD traded to its highest level in 7-months this past week
• Volume has been in general decline since mid-May
• Above average volume during the move higher this week is a potential positive
• A daily close below 1.5640 on above average volume is needed to turn the outlook negative on the pound

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

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