EUR futures: poised for extra decline

CME Group’s flash data for EUR futures showed open interest dropped by more than 3.1K contracts on Friday vs. Thursday’s 449,358 contracts. Volume followed suit, decreasing by more than 25.4K contracts.

EUR/USD now targets 1.1660

Friday’s drop in EUR/USD has been accompanied by a decline in both prices and open interest, showing the liquidation of long positions is still in play among traders, with the next target around recent lows in the 1.1660.

The pair is likely to consolidate ahead of the ECB meeting on Thursday, where consensus is tilted towards a ‘dovish tapering’ message.