EUR futures: rally appears well and sound, ECB begs caution

Pablo Piovano FXStreet

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.

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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.