EUR/USD Bias: Bearish Below 1.15, Bullish Above
Tickmill | Dec 13, 2021 03:50AM ET
EUR was sagging in the Asia session, could a dovish ECB later this week to blame? The single currency was a tad heavy going into a week jam-packed with central bank meetings. Russia-Ukraine tensions and the Omicron spread were also raising concerns.
EUR/USD was trading early at 1.1319 to 1.1293 EBS, back below 1.1301-10 hourly on the Ichi cloud. Through 1.1297 100-HMA, a flat Ichi kijun just below at 1.1295 too. The pair have been trading light, an inside day; range Friday was 1.1266-1.1319. There are large options expiring on sides—1.1250 E1.4 bln, 1.1320 E2 bln
EUR/JPY saw 128.44 in early Asia trading, reaching 128.26. EUR/GBP reached 0.8525-34, also a tad heavy. EUR/CHF indicated 1.0415-23.
DTCC traded FX option data shows massive nearby strikes expiring Monday; related delta hedging helps containment, adds to support and resistance. 1.5-billion euros 1.1250, 1.1-billion 1.1270-1.1300, 2-billion 1.1320.
Option implied volatility supported ahead of key central bank meetings shows the market is wary of post central bank volatility, despite being quiet ahead of time.
The 1-month risk reversals have erased their long term downside premium.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.