According to preliminary figures for EUR futures markets from CME Group, investors trimmed their open interest positions by around 4.1K contracts on Tuesday, recording the second drop in a row. Volume, instead, reversed two consecutive pullbacks and rose by nearly 18K contracts.
EUR/USD still points to a test of 1.1026
Tuesday’s positive price action in EUR/USD was on the back of shrinking open interest, noting lack of sustainability of occasional bullish attempts and the presence of short covering sponsoring them. However, the up move in volume could support a squeeze higher in the very near term, although far from being a change in sentiment.
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