According to preliminary figures for EUR futures markets from CME Group, investors trimmed their open interest positions by around 3.5K contracts on Tuesday from Monday’s final 509,005 contracts. Volume, instead, rose for the second session in a row, this time by just 820 contracts.
EUR/USD a deeper pullback is not ruled out
Shrinking open interest amidst declining prices could remove some strength from further decline in EUR/USD, allowing for a rebound in the near term. However, rising volume is still expected to favour extra retracements.