One reason we have been fairly range-bound the last session or two is today’s large 1.3700 expiry…That helped keep us more or less in a 1.3650/1.3750 range, tightening as we get closer to the expiry.
We have just picked up word of a similarly large expiry on Monday at 1.3700. The parameters will widen out toward that 1.3650/1.3750 again after today’s option cut, but it won’t be an entirely open playing field, looks like.
In other words, don’t get too bearish in the 1.3640/50 area or two bullish in the 1.3750/60 area as options related flows may thwart follow-through…
UPDATE..Talk now of stops building from day traders below 1.3675.
