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EUR/USD: Option plays still the dominant factor

By   || October 26, 2010 at 21:11 GMT
|| 14 comments || Add comment

No change in the prognosis here with heavy demand below 1.3850 providing a base overnight and there is also talk of barriers at 1.3800 which will be protected. With the topside also heavy with option-related selling, we can expect more range trading for the next couple of weeks.

The EUR is a bit of a mixed bag on the crosses, resurgent against the CHF but looking heavily overbought against the GBP, so no big directional hints coming from any of the cross pairs.

Keep your range trading hats on until some new developments change the landscape.

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Category: All, Asia
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14 Responses to “EUR/USD: Option plays still the dominant factor”

  1. John on October 26th, 2010 21:18 GMT

    Like QE2 and the mid term elections in the US

  2. Jeff on October 26th, 2010 22:31 GMT

    Sean, Do you mean the EUR/GBP is oversold or over bought?

  3. jahed on October 26th, 2010 22:36 GMT

    Hi Sean, Whats your view on aud/usd today we trade below 9900 and move towards 9700 in coming sessions? and also do DNT ever get broken as we are near the DNT on eur/usd…..Holding a short position for a move towards 1.3700

  4. Sean Lee on October 26th, 2010 22:38 GMT

    Hi Jeff. It was ridiculously overbought on Monday but much of that has now been unwound by the move lower.

  5. Sean Lee on October 26th, 2010 22:40 GMT

    Hi Jahed. The dnt s get broken on a regular basis. The first attempt usually fails but it seldom survives 3 or 4 attempts as the market is simply much bigger than any one player. As you probably know I’m expecting AUD/USD to fall back to around 93 cents in next few weeks when longs get out of the market pre-FOMC

  6. Blackday on October 26th, 2010 22:40 GMT

    From rough to polished? The EURUSD diamond top formation is looking more like a girls best friend by the day.

  7. Blackday on October 26th, 2010 22:43 GMT

    Gawd. Here’s the EURUSD daily chart

  8. Blackday on October 26th, 2010 22:44 GMT

    OK – HTML links not working. Here’s the link:- http://www.ukimagehost.com/view/5409277c589f5b9b.jpg

  9. Blackday on October 26th, 2010 22:45 GMT

    I’m so out of BB practice! Good luck folks.

  10. db8 on October 26th, 2010 22:50 GMT

    tehinical in war hmmmm
    head and sholders bring you to 1,3699 and next day loosing all money .
    this is sign in peace not in war.

  11. jahed on October 26th, 2010 22:54 GMT

    Thanks Sean

  12. Sean Lee on October 26th, 2010 23:04 GMT

    Thanks Blackday, it’s a beauty

  13. Jim W on October 26th, 2010 23:23 GMT

    A diamond top is a reversal pattern is it not?? Hmmm soooo many reversal signals, I am kinda getting the feeling that the FOMC is going to come up short and the USD is going to gain… Seems so illogical though..

  14. db8 on October 26th, 2010 23:44 GMT

    logical dont make money this days
    USD is not world currency was logic
    EUR goes 0,8 was logic and EU later will break a part
    fear & greed have nothing with logic :)

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