Volumes held up relatively well at the start of the new month; however, we are expecting them to tail off into the holiday season.
– EUR/CHF burst into life yesterday, rallying through trendline resistance on double the volume seen last Friday; this implies further upside risk this month.
– USD/JPY surprised us by falling, suggesting the very high volumes on Friday contained more selling than we anticipated. However, on the crosses volumes still point to a weaker yen.
– USD/CAD is drifting slightly higher on declining volume, suggesting downside potential later in the month.
Click here to read the full report: Technical Research
Barclays Capital