EUR futures: negative near term, potential squeeze higher

CME Group’s flash data for EUR futures markets showed investors trimmed their open interest positions by more than 6K contracts on Wednesday vs. Tuesday’s final print at 592,061 contracts. In the same direction, volume contracted sharply more than 96K contracts, fully reverting the previous gain.

EUR/USD risks a test of 1.2165

EUR/USD is extending the weekly correction lower to the sub-1.2300 zone and risks a test of mid-January lows at 1.2165, coincident at the same time with a Fibo retracement of the 2014-2017 drop at 1.2167, all against the backdrop of increasing risk-off sentiment. However, contracting volume and open interest coupled with lower prices could open the door to a near term rebound.