EUR futures: a top in place above 1.20?

CME Group’s advanced data for EUR futures markets showed investors increasing their open interest positions by nearly 6.4K contracts on Tuesday vs. Monday’s final 468,232 contracts. In the same direction, volume rose significantly by more than 140K contracts to 295,039 contracts, the highest level since July 20.

EUR/USD consolidation likely to follow

Spot advanced well above the key limestone at 1.2000 the figure on Tuesday, although sellers stepped in and forced EUR/USD to close the day in red figures, shedding around a cent since daily tops in the vicinity of 1.2070.

A strong build in volume in combination with rising open interest and yesterday’s ‘gravestone doji’-like candle all suggest that we may be at the onset of a reversion of the strong up trend, prompting caution among traders.