In view of preliminary figures for EUR futures markets from CME Group, open interest dropped by more than 3.5K contracts on Wednesday from Tuesday’s final 477,881 contracts. Volume, instead, rose by around 19K contracts, recording the second build in a row.
EUR/USD under pressure, looks below 1.1700
The upside momentum around EUR/USD appears somewhat mitigated following the rate hike by the FOMC and Italian headlines. This coupled with the inability to break above the 1.1800 handle on a convincing fashion opens the door for a potential correction lower to 1.1700 and below in the near term. Choppy activity in open interest and rising volume in combination with lower prices reinforces this view.
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