EURUSD: EUR/USD - Trading Sideways, Decent Optionality Toward 1.1800-1.1850
The EUR/USD range overnight was 1.1856-1.1890, Asia is currently trading around 1.1870. The pair trades sideways below 1.1900 albeit with a heavy tone. Price action though remains overall constructive, can it build a base above 1.1800 and then find the momentum to push on? On the day, the first support is back toward 1.1820-1.1850 and then the 1.1750 area. A sustained move back above 1.1925-1.1940 is needed to give it the thrust it needs to have another look toward the 1.2000 area. Quite a lot of optionality is expiring in the 1.1800-1.1850 area today.
- “BofA boosted its year-end target for German 10-year yields to 3%, from 2.75%, citing stronger domestic economic growth and the ECB keeping rates on hold.” - BBG
- Options : Closest significant option expiries for NY cut, based on DTCC data: 1.1800(EU3.24b), 1.1850(EU5.25b), 1.1950(EU2.66b). Upcoming Close Strikes : 1.1900(EU1.22b Feb 17), 1.1950(EU999m Feb 17), 1.2000(EU1.36b Feb 18 ) - BBG
- The EUR/USD Average True Range for the last 10 Trading days: 61 Points
Fig 1 : EUR/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
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