There are a couple of key expiry levels to take note of on the day, as highlighted in bold below.
The first is for EUR/USD at the 1.1500 level, which sits less than 30 pips higher away from the current spot price.
The expiry level doesn’t tie to any technical significance but could act as a short-term focal point or magnet, should there be any upward extension in price action later.
That being said, just be wary that the 100-hour moving average for EUR/USD is resting at around 1.1485 currently. And so, that will also play a role in keeping any upside extensions more limited from a technical perspective. If anything, that will be the first layer in keeping price action more in check before the expiries at 1.1500 come into play after.
Then, there are a couple of large expiries sandwiching the current spot price for USD/JPY at the 157.00 and 158.00 levels.
Essentially, they may act as bookends for price action in the session ahead. On any downside move, the expiries at 157.00 could make the level somewhat more resistant to a clean break before expiry, particularly if broader trading conditions are relatively quiet. Likewise, the ones at 158.00 will do the same on any upside move.
But as we continue to navigate through the early stages this week, just be wary of thinner liquidity conditions involving the yen currency. And that is raising the stakes on intervention risks, especially with USD/JPY continuing to gradually push higher. So, that is another key factor that could drive price action in the currency pair.
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.