EUR futures: deeper pullbacks expected

In light of CME Group’s preliminary data for EUR futures markets, traders trimmed marginally their open interest positions by just 337 contracts on Thursday from Wednesday’s 439,299 contracts. On the opposite direction, volume rose by more than 20K contracts, reverting a 6-day negative streak.

EUR/USD closer to 1.1660

EUR/USD has resumed the downside in the second half of the week, breaking below the critical support at 1.1700 the figure for the first time since mid-August and opening the door at the same time for a test of August’s low in the 1.1660 region.

The recent down move has been amidst flat activity in open interest, while volume has been mostly decreasing. However, yesterday’s drop and subsequent close near session lows has been accompanied with a moderate increase in volume, allowing for extra downside in the near term at least.