EUR futures: downside appears limited
In view of advanced data for EUR futures markets from CME Group, investors scaled back their open interest positions by more than 6.3K contracts on Wednesday vs. Tuesday’s final 495,561 contracts. In the same line, volume decreased significantly by almost 31K contracts, reverting the previous increase.
EUR/USD well supported near 1.1830
Yesterday’s doji-candle has been against the backdrop of deceasing both interest and volume, hinting at the case that further pullbacks should remain not only shallow but also well contained in recent lows around 1.1830.
The main risk to this scenario emerges from further progress on the US tax reform bill, which could eventually give extra oxygen to the buck and drag spot lower.