EUR/USD Futures OI Increased by a Whopping 21K Last Friday
Preliminary data from the CME Group
shows that futures traders added new business aggressively in the 6E
contract (EUR/USD) last Friday, as the Euro broke through a key area of
resistance at 1.14, suggesting that the upside resolution is being
backed up by new players.
Open Interest shows a massive increase at key level
The increase in open interest* on Friday, April 30th, was of a whopping 21,153 contracts that were added in a day that a commanding bullish breakout candle was printed, which makes the case for additional long-side follow through this week quite compelling, as the market continues to price out US rate hike chances in H1 2016.
*Note, if instead of an increase in open interest in the 6E contract last Friday, we had seen a negative reading, that implies a withdrawal of liquidity, via shorts EUR closing their positions, also referred as short squeeze; when that occurs, despite the appreciation in the Euro, it implies no substance/commitment behind the bullish move.