If the foreign exchange market were a chessboard, options expiry levels would represent its critical squares. These price points act like magnets, often attracting price action around expiration dates and significantly influencing trading strategies. A series of forex options expiring on December 9 at 10:00 AM New York time are currently drawing close attention from market participants.
EUR/USD: Multiple Barriers With 1.15 as Strong Support
The euro-dollar pair faces several key options expiry levels. The 1.1760 area sees €1.62 billion worth of options expiring, potentially creating short-term resistance. Below current levels, €1.2 billion at 1.1600 and €1.21 billion at 1.1500 are set to mature, with the latter potentially forming a solid support floor. Should EUR/USD break below 1.16, the 1.15 level becomes the next critical zone to watch. Traders should monitor price action around these levels to gauge market sentiment and potential reversal or breakout opportunities.
USD/JPY: 157 as Potential Short-Term Ceiling, 155.50 as Support
For dollar-yen, $325.47 million in options expire near 157.00, which may cap further upside. The 155.50 level has $319.96 million in expiring contracts that could provide support. With the yen remaining under pressure, these expiry levels may serve as reference points for short-term trading. Market participants should remain alert to potential Bank of Japan intervention and shifts in global risk appetite, both of which could significantly impact USD/JPY movements.
GBP/USD: 1.34 Under Pressure, 1.3250 as Support
Sterling faces £291.94 million in expiring options at 1.3400, creating potential resistance, while £209.81 million at 1.3250 may offer support. UK economic data releases and Bank of England policy developments will likely be the primary drivers for GBP/USD beyond these technical considerations.
Other Currency Pairs: Notable Expiry Levels
Additional currency pairs with significant options expiries include:
- USD/CHF: $249.85 million at 0.8040
- USD/CAD: $633 million at 1.3950
- AUD/USD: $949.5 million at 0.6635 and $524.35 million at 0.6500
- NZD/USD: $148.91 million at 0.5775
- EUR/GBP: €329.71 million at 0.8790
These expiry levels may influence short-term price action in their respective pairs. Traders should combine this technical information with fundamental analysis when formulating strategies.
Utilizing Options Expiry Data Effectively
Options expiry information helps identify potential support and resistance areas while revealing market expectations. However, traders should remember these levels don't guarantee price behavior—economic data, geopolitical developments, and unexpected news can override technical factors. The most prudent approach combines options expiry analysis with other market evaluation methods.
Foreign exchange trading carries substantial risk, and investors should carefully consider their risk tolerance before participating. Options expiry data serves as informational reference only and should not be construed as investment advice.