EUR futures: ‘outside day’ prompts caution

Pablo Piovano FXStreet

According to CME Group’s preliminary fugures for EUR futures markets, open interest dropped by more than 1.8K contracts on Wednesday vs. 449,086 contracts from Tuesday’s final readings, recording the second consecutive drop.

Regarding volume, traders added over 44K contracts yesterday, adding to the weekly up trend.

EUR/USD scope for pullbacks

The pair recorded and ‘outside day’ candle on Wednesday following the FOMC meeting, while the rally seems to have found tough resistance at today’s fresh 30-month tops near 1.1780 seen in early trade. Dwindling open interest and the current daily correction lower opens the door for a potential deeper retracement in the near term. EUR/USD is also navigating in overbought levels, which reinforces this view.

To note, however, is that volume remains above the monthly average and has been increasing in the last couple of sessions.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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