There are just a couple of key expiry levels to take note of on the day, as highlighted in bold below.
They are for EUR/USD at the 1.1250 and 1.1275 levels, with the strike prices holding in between the spot price. As such, the expiries could act as bookends in keeping price action more contained in the session ahead. That unless we get any major swings in dollar sentiment or risk headlines to influence price action.
The expiries at 1.1250 will be the more interesting one with that resting near key resistance from around 1.1254, that being the 23.6 Fib retracement level of the swing lower from August to October. So, the expiries could keep price action more anchored and attract more two-way flows ahead of the cut as buyers try to muster a technical breakthrough today.
Besides that, the larger expiries for USD/JPY and GBP/USD are too far away from the spot price to be of much influence in the day ahead.
In the bigger picture, dollar sentiment and the overall risk mood will arguably be the two more important drivers today. So, be sure to keep a watchful eye on that as traders will slowly be gearing towards the US non-farm payrolls tomorrow as well.
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.