eur-usd has stiff resistance at 1.3170 and strong support at 1.3050.
Euro FX
EUR/USD
Date 14/02/2012
Total Open Interest 286,579
Net Marginal Change -1,354
Change in Total OI -28,771
Euro’s Open Interest kept dropping further. It has declined by another 1,354 transactions. Total decrease in open interest has now reached 28,771 contracts. This amount stands for a total 9.27% of OI in this market. This size of the OI decline ends downtrend in EUR/USD. The EUR/USD spot price has retreated towards 1.3070 area forming good opportunities to enter long positions. Expect further drops in price in the coming days. We should see an increase in Open Interest soon. A rise in OI after the significant decline suggests new long positions being created putting an upward pressure on the price. Strategy – buy on dips.
Date 17/02/2012
Total Open Interest 294,084
Net Marginal Change -5,001
Change in Total OI (%) -6.85
An Open Interest dropped today by 5,001 transactions. The total OI in the Euro futures stands at 294,084 contracts. Today we notice falling open interest and increasing regular trading hours (RTH)volume. This indicates that futures traders are liquidating their existing contracts. Normally it reflects profit taking by both buyers and sellers. As we do not know what the sentiment is on daily basis is, we expect more new contracts being created in this market. More interest and fresh transactions should put upwards pressure on the spot price. Open interest has recovered slightly since the last drop. It is unlikely that it would drop again after only marginal increase. Historically OI tends to add at least 20% at the time. Strategy remains intact.