EUR/USD: Futures OI Increased by 3.7k Last Friday
Preliminary data from the CME Group
shows that futures traders added new business in the 6E contract
(EUR/USD) last Friday, a day in which the pair broke a key area of
support at 1.1350, suggesting that the decline is being supported by new
Open interest shows increase during 1.1350 breakout day
The increase in open interest* on Friday, May 13th, was of 3,700 contracts that were added in what was a decisive bearish directional day, implying potential for follow through to the downside this week, should intrinsic value (Fed fund rates) and risk profile (risk on/off) agree.
*Note, if instead of an increase in open interest in the 6E contract last Friday, we saw a negative reading, that implies a withdrawal of liquidity, via long EUR players closing their positions, also referred as long liquidation; when that occurs, despite the depreciation in the Euro, it implies no substance/commitment behind the bear move.