EUR Futures: rallies seen limited

Open interest in EUR futures markets rose for the third session in a row on Wednesday, now by around 1.3K contracts according to advanced data from CME Group. Volume, instead, reversed two consecutive builds and shrunk by nearly 55K contracts.

EUR/USD faces resistance around 1.10

The upside momentum in EUR/USD could be running out of steam amidst a significant drop in volume. However, Wednesday’s positive price action was in tandem with rising open interest, allowing for the continuation of the squeeze higher in the very near term. The up move is expected to meet a tough barrier in the 1.10 neighbourhood, where is located the 21-day SMA.