Futures open interest: Potential EUR/USD buy campaign

Preliminary data from the CME Group shows that futures traders have added new business in the 6E contract (EUR/USD) last Monday and Tuesday, with the pair having found a balance (acceptance area) between 1.1330-1.1390, with the most recent demand interest now matching supply from the 50 line of its baance area circa 1.1350, suggesting that buyers are now willing to pay a higher price for what it appears to be the build up of longs.

Open interest see whopping increase as Fed fund futures collapse post US NFP

The increase in open interest* on Monday and Tuesay was in the tune of 10k and 12k new contracts approximately, which may be serving the purpose of an acculuation of long-side business, with the play being backed up/driven by the reduction in the Fed fund futures. The addition of open interest at these highs makes the case for a potential upside resolution this week.

*Note, if instead of an increase in open interest in the 6E contract, we had seen a negative reading, that implies a withdrawal of liquidity, via shorts EUR closing their positions, also referred as short squeeze; when that occurs, despite the appreciation in the Euro, it implies no substance/commitment behind the bullish move. However, as it's now the case, adding fresh positions at present levels suggests a potential buy campaign.