EUR/USD's 0.23 percent rise over the latest IMM reporting period will probably make it a solid contributor to a general reduction of dollar longs, since it's the largest DXY component, but it may not have led the charge. More significant long USD selling took place in cable as GBP/USD rallied 1.3 percent on rising expectations for a Brexit deal.
It is also worth keeping an eye on the EM component (NETUSDEM=) in upcoming releases.
The recent hint of progress in U.S.-China trade issues and interest rate hikes by emerging markets, notably Turkey and Russia, have helped stabilize their currencies leading to a paring of large USD/EM longs.
But, USD-long unwinding may be short-lived, as Fed hikes may prove more sustainable than elsewhere.
The Fed is on track to hike 2 more times in 2018, while other major central banks remain on hold.
Further, China, Italy and Brexit issues are far from settled and heightened uncertainty in these areas will likely lead dollar safe-haven buying to return.
IMM pairs Sep 5-11 Chart: Click here