There are just a couple of key expiry levels to take note of on the day, as highlighted in bold below.
The first one is for EUR/USD at the 1.1150 level, with the strike keeping just a little over 30 pips from the spot price. With price action still somewhat more limited below the 1.1200 level, the expiries could provide some attraction if we are to see the dollar strengthen in the session ahead. The expiries are holding near the swing lows late on Friday and also earlier today, so they might provide some magnet for price action to keep around there on any downside push in the session ahead.
Then, there is one for USD/JPY at the 158.00 level – roughly 20-25 pips away from the spot price. The pair continues to be caught in a lot of back and forth movement since last week, with daily gains capped by the 158.00 mark. As such, the expiries above could add a layer to the short-term resistance point in keeping price action more in check on any upside extensions in the session ahead. In the bigger picture though, the 200-day moving average at 158.54 remains the key obstacle on the charts for any further topside moves.
In looking to markets as a whole to start the week, the focus and attention now shifts toward the US midterms tomorrow. US futures are bouncing back a fair bit today, with tech shares seeking some reprieve after a bloodbath on Friday. So, that is playing to a bit of a better risk mood as well to start the new week but one that is more about a fragile bounce than any suggestion of a risk turnaround.
So, that encapsulates the market mood and how traders are reacting with the dollar mildly on the backfoot for now.
For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.
This article was written by Justin Low at investinglive.com.
