EUR futures: bullish sentiment poised to remain (ahead of the ECB)

CME Group’s advanced figures for EUR futures markets on Tuesday showed volume more than doubled while open interest ticked higher by more than 15K contracts vs. Monday’s final 432,323 contracts.

Up trend intact so far

Tuesday’s move higher to fresh multi-month tops in the 1.1580 region is backed by bullish signals, represented by increasing volume and open interest and all reinforcing the underlying bullish view that has been prevailing among traders in past weeks.

Hence, the current knee-jerk is expected to remain corrective only, allowing fresh dip buyers to enter the market and give extra sustain to the up move. The next target still stays at 2016 tops at 1.1616. Risks to this scenario, however, come from the ECB meeting on Thursday and any potential dovish tone from President Draghi.