EUR futures: rallies to be short-lived

According to CME Group’s preliminary data for EUR futures markets, traders scaled back their open interest positions by almost 6K contracts on Monday vs. Friday’s 443,838 contracts. In the same line, volume decreased by more than 138.2K contracts, the largest drop since September 18.

EUR/USD faces strong resistance around 1.1835/40

EUR/USD‘s price action on Monday showed some indecision by traders despite the ongoing 3-day positive streak. However, rising prices in tandem with diminishing open interest is a bearish signal noting the upside is being fuelled by short covering. In addition, it is worth mentioning the significant drop in volume, which removes support from the current up move.