There are a couple to take note of on the day, as highlighted in bold below.
The first being a modest-sized one for EUR/USD at the 1.1765 level. It isn’t one that ties to any technical significance, so the impact of the expiries is likely to be less pronounced. If anything, it could just act as a mini-magnet in holding price action in European morning trade amid the lack of other key risk events during the session.
But with the pair lingering below its key hourly moving averages since overnight trading, sellers are in near-term control. And that should see price action rest below the 100-hour moving average of 1.1791 barring any dollar selling bouts in European morning trade.
Similarly, there is also a modest-sized one for GBP/USD at the 1.3500 level. That holds close by to the pair’s own 100-hour moving average of 1.3496. As such, the expiries could double up as a defensive layer in keeping a ceiling on any price extensions in the session ahead before we get to US trading.
And lastly, there is one for AUD/USD at the 0.7025 level. The expiries don’t tie to any technical significance and so we could see a more muted impact on price action in the session ahead. The pair remains a bit choppy this week as the dollar recovers some ground after early losses in Asia trading yesterday.
So, the push and pull is likely to keep price action more cagey for the time being. Adding to that, there is also going to be a handful of large expiries for AUD/USD tomorrow. So, that could also factor into play in keeping price action more contained. That especially in between 0.7000 to 0.7100 as seen with the above list for now.
For more information on how to use this data, you may refer to this post here.
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