EUR futures: neutral/bearish ahead of ECB

• Volume and open interest decreasing
• Rangebound likely ahead of ECB

In light of CME Group’s preliminary figures for EUR futures markets, open interest decreased for the second straight session on Monday, this time by more than 2.6K contracts vs. Friday’s 446,288 contracts. Volume followed suit, down by more than 33K contracts, printing at the same time the second consecutive drop.

EUR/USD under pressure, looks to ECB

EUR/USD remains fragile, as markets get closer to the ECB meeting. However, the 1.1730 region appears as quite a solid support for the time being. Declining prices in tandem with diminishing open interest points to liquidation of long positions. However, dwindling volume in the current context opens the door for a potential U-turn.

In the very near term, the outcome of the ECB gathering on Thursday remains key for the pair’s price action. It is worth mentioning that market consensus expects  dovish message regarding QE ‘tapering’, which could force spot to retest recent lows near 1.1660.