In light of CME Group’s flash data for EUR futures markets, traders added more than 13K contracts to their open interest positions on Tuesday - the largest daily increase since September 14 – vs. Monday's 461,197 contracts. In the same line, volume rose sharply by more than 154.5K contracts.
EUR/USD potential for a test of 1.20?
Tuesday’s uptick in EUR/USD has been in tandem with an important increase in both open interest and volume, opening the door at the same time for a visit to higher levels. In this scenario, a re-test of the critical 1.20 handle and above should not be ruled out.
The weakness around the buck continues to be behind the up move in spot, and as long as there is no progress in the US tax reform plans, the likeliness of a push higher in the pair remains well and sound.
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