By Richard Pace — Feb 22 - 02:41 AM
There are a huge 3.25 billion 0.7900 vanilla FX option expiries Fri Feb. 26
Related hedging flows will often draw price toward strike as expiry nears
Same flows can add to any support/resistance. 0.7908 was new cycle high Mon
0.7900 barriers gone, but 0.8000 barriers and triggers much bigger
Many traders hold RKO options with related triggers at 0.8000 and just above
They are long vanilla AUD calls - the option to buy AUD/USD at lower levels
However, if triggers hit before expiry, the options are dead nL1N2KM0NW
For more click on FXBUZ
AUD=D3 Click here
Source:
Refinitiv IFR Research/Market Commentary