• EUR/USD peaked 1.1622 Monday after US/Iran deal news and trades 1.1609-1.1575 Tuesday (EBS), market await Fed for clues

• More large 1.1600 FX option strikes help to contain price action before their 10-am New York cut expiry Tues, larger on Thursday

• Bulls may be encouraged by daily close above 21-dma at 1.1605 and 55-dma 1.1662, but above 200-dma 1.1672 remains key

• Daily cloud adds resistance 1.1629-1.1701 as do a massive $9-billion 1.1640-55 option strikes which expire on Thursday

• FX option implied volatility sits at at 2026 lows - that's consistent with low realised volatility/expectations

• Risk reversals are stepping back from last week's highs, reflecting diminishing demand for EUR/USD downside hedges
EUR/USD daily chart (EBS)


(Richard Pace is a Reuters market analyst. The views expressed are his own)