There are just a couple of expiries to take note of on the day, as highlighted in bold below.
The first one is for EUR/USD at the 1.1400 level. It doesn’t really tie to any technical significance, keeping just below the key hourly moving averages in the range of 1.1406-20 currently. As such, the expiries could just act as an added layer to keep price action from falling off too much on any downside extensions in the session ahead.
The dollar is looking more mixed and tentative after early gains yesterday, so traders are likely to be more pensive awaiting a fresh catalyst to move on.
But for today, there’s not much on the agenda and so the only thing that might have an impact is the broader risk mood. In that lieu, eyes will be on tech shares as noted here earlier. That would be the potential driver of dollar sentiment, with not much else happening with the US-Iran conflict this week.
Then, there is one for USD/JPY at the 162.00 level. But as mentioned countless times already in recent weeks, intervention risks remain the more important influence of price action for the pair. The expiries are likely to see a more limited or muted impact given the circumstances.
It’s all a psychological game now for yen traders. From the day before: Yen-tervention risks remain in focus to start the new week
For more information on how to use this data, you may refer to this post here.
This article was written by Justin Low at investinglive.com.
