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FX option expiries for 24 February 10am New York cut

There are a couple to take note of on the day, as highlighted in bold below.The first being a modest-sized one for EUR/USD at the 1.1765 level. It isn’t one that ties to any technical significance, so the impact of the expiries is likely to be less pronounced. If anything, it could just act as a mini-magnet in holding price action in European morning trade amid the lack of other key risk events during the session.But with the pair lingering below its key hourly moving averages since overnight trading, sellers are in near-term control. And that should see price action rest below the 100-hour moving average of 1.1791 barring any dollar selling bouts in European morning trade.Similarly, there is also a modest-sized one for GBP/USD at the 1.3500 level. That holds close by to the pair’s own 100-hour moving average of 1.3496. As such, the expiries could double up as a defensive layer in keeping a ceiling on any price extensions in the session ahead before we get to US trading.And lastly, there is one for AUD/USD at the 0.7025 level. The expiries don’t tie to any technical significance and so we could see a more muted impact on price action in the session ahead. The pair remains a bit choppy this week as the dollar recovers some ground after early losses in Asia trading yesterday.So, the push and pull is likely to keep price action more cagey for the time being. Adding to that, there is also going to be a handful of large expiries for AUD/USD tomorrow. So, that could also factor into play in keeping price action more contained. That especially in between 0.7000 to 0.7100 as seen with the above list for now.For more information on how to use this data, you may refer to this post here.Head on over to investingLive (formerly ForexLive) to get in on the know!
This article was written by Justin Low at investinglive.com.

🔗 Source

💡 DMK Insight

EUR/USD’s expiry at 1.1765 might seem minor, but here’s why it matters: While this level lacks technical significance, it can still influence short-term volatility. Traders often react to expiries, leading to potential price swings as positions are unwound. If we see a break below or above this level, it could trigger further movement, especially if combined with broader market trends or economic data releases. Keep an eye on correlated assets like the DXY index, as shifts there could amplify reactions in EUR/USD. Also, consider monitoring the 1.1750 and 1.1800 levels for additional support and resistance, respectively. These could serve as key pivot points in the coming sessions, especially if market sentiment shifts due to external factors like Fed announcements or geopolitical events. In the current environment, where traders are skittish about inflation and interest rate hikes, even minor expiries can create ripples. So, while 1.1765 might not be a major technical level, its expiry could still lead to unexpected volatility, making it worth watching closely.

📮 Takeaway

Watch for potential volatility around the 1.1765 expiry in EUR/USD; key levels to monitor are 1.1750 for support and 1.1800 for resistance.

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