EUR futures: further declines expected

According to CME Group’s preliminary figures for EUR futures markets, investors trimmed their open interest positions by more than 1.3K contracts on Wednesday vs. Tuesday’s final 493,677 contracts. Volume followed suit, dropping significantly by more than 42K contracts.

EUR/USD focused now on 1.2165/55

Wednesday’s doji-like candle in EUR/USD showed some indecision among traders, while the short-term resistance line off YTD lows continues to cap the upside in the 1.2330 region. The current sideline theme has been on the back of choppy activity in both open interest and volume, leaving the consolidative pattern unchanged at least in the near term and at the same time opening the door for a potential test of the critical 1.2165/55 band.