Not a good day at the office for this pair 20 Feb
Now posting fresh session lows of 0.7881 from 0.7900 having failed above 0.7930 in early European trading.
I highlighted in the orders post at the time that we were seeing large (AUD 3.3bln) option expiry interest tomorrow already in play and suggested a 0.7880-0.7935 range. Well, the topside proved resilient so now we wait to see if the bottom side proves as tough a nut to crack.
Always takes two to tango on an option contract so we should expect the buy side to prevent it from drifting too far. Despite all the noise we're ranging with good two-way pips to be had.
Remember these are vanilla options and in play right up until expiry even if breached in the meantime unlike barrier options which cease to be once broken.
For more info on how to use this all data, please refer to my post here.
AUDUSD in ranging mode still
