EUR futures: rally appears well and sound, ECB begs caution
|According to CME Group, Monday’s preliminary data showed open interest decreased by nearly 3.9K contracts vs. Friday’s final 432,473 contracts. In addition, volume dropped for the second day in a row by more than 65K contracts.
EUR/USD now targets 1.1616
Market participants might well ignore yesterday’s doji-ish candle, as the pattern was accompanied by dwindling volume and open interest, hinting at the idea that the ‘indecision’ should not be sustainable, let alone have a noticeable influence on spot.
The rally, however, could enter into a cautious-mode ahead of the key ECB meeting on Thursday, where market participants seem to be (quite) biased towards some kind of announcement by the central bank regarding its QE programme.
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