There are a couple of key expiry levels to take note of on the day, as highlighted in bold below.
The main one to watch is for EUR/USD at the 1.1200 level, with the strike keeping within 20 pips of the spot price. That could offer a bit of a magnetic pull on price action during the session ahead, especially if trading conditions remain relatively subdued. Besides that, there is also one at the 1.1250 level and together with the one at 1.1200 they could help keep price action more contained between the two levels.
That is especially the case as the technicals are showing that near-term price action remains caught in between the key hourly moving averages around 1.1215-20 mostly. And also, downside price action is being defended around the 1.1190-00 region since last week. Meanwhile, topside price action is also limited closer to the 23.6 Fib retracement level of the swing lower from August to October around 1.1254.
As such, the expiries today are likely to reinforce those levels unless there are any major headline surprises to shift broader market sentiment and the dollar.
As always, the expiries are worth keeping in mind for potential price attraction or containment but broader market drivers and technical levels should still take precedence – particularly with several major central bank decisions coming up this week.
For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.
