FX option expiries for 18 May 10am New York cut


There are quite a few expiries to take note of on the day, as highlighted in bold below.

The first two are for EUR/USD at the 1.1600 and 1.1650 levels. The expiries don’t tie to any technical significance but may still have a bit of impact as we get things going in the new week. The dollar is in a solid spot after the risk selloff at the end of last week, with EUR/USD breaking down from a technical perspective.

The break below the 200-day moving average now puts sellers firmly in control but they will have to chew through some bids closer to 1.1600 to start the week.

With the risk mood still leaning more defensively, the pressure will certainly be on. However, the large nature of the expiries at 1.1600 could keep price action up just for a little bit before rolling off later in the day.

Then, there is another large one for USD/JPY at the 159.00 level. As things stand, Tokyo intervention remains the number one risk for the currency pair. There were some minor knocks last week, but nothing to dissuade the overall trend from moving back up to 159.00 today.

The expiries could yet hold price action and act as a bit of a speed bump in the hours ahead. But all else being equal, the pair looks set to try and test the limits of Tokyo once again this week. So, that will be a key risk especially if we start to venture closer to the 160.00 level. You can bet that Japan’s ministry of finance will not want to allow price action to revisit that threshold again.

And lastly, there is one for AUD/USD at the 0.7170 level. It is not one that holds any technical significance and may not see much impact on the day. That especially as the dollar remains in control amid a more dour risk mood to start the new week. US-Iran proceedings remain deadlocked and that continues to put pressure on broader market sentiment for now. In turn, that’s a negative weight for the aussie.

For more information on how to use this data, you may refer to this post here.



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