There is arguably just one to take note of on the day, as highlighted in bold below.
That being for EUR/USD at the 1.1700 level. The expiries don’t tie to any technical significance, so I would wager that their relative impact will be minimal to none on a day like this.
As things stand, the broader market reaction to the latest US-Iran headlines is the only game in town. A two-week ceasefire looks to be convincing markets that all is well in the world again, with oil prices plummeting and risk trades ramping up. That is seeing the dollar slide across the board with EUR/USD rising to a five-week high.
The pair is now running up against the confluence of key resistance from the 100 and 200-day moving averages, seen at 1.1672-85 currently. That for me is the bigger hurdle in terms of limiting upside price action for the time being. Keep below that and sellers are still in a with a shout. But break above the key technical layer, and buyers can start to talk about revisiting the 1.1800 to 1.2000 region again.
That sums up what trading sentiment is going to be all about in the coming day or two. It’s all on the risk mood and how broader markets are taking to the ceasefire news and if this bout of optimism can stick.
As such, the impact of any major option expiries will be quite muted unless market volatility settles down a bit more in the coming days.
For more information on how to use this data, you may refer to this post here.
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