It's been the story of the week so far
Currently the pair is trading under the figure level at 105.90, but it is off the lows posted earlier at 105.58.
Trade rhetoric between US and China continues to weigh on the pair, and a weaker dollar post-FOMC isn't helping in giving the pair a lift for the time being.
S&P 500 futures have bounced off lows for the day, and that should give some relief to the pair until the next catalyst comes along.
For the month, the pair is basically stuck in a trading range between 105.32 and 107.32 - as shown in the daily chart above.
The lows so far this month has been kept well away from the 105.00 level - which as Mike pointed out in his daily posts has a barrier option sitting there. But that could soon no longer play a part in this come Friday or next week.
A barrier option at the level with a notional face value worth more than $10 billion is set to expire on Friday, so the anchor that has been there for the whole of this month may no longer play a prominent role once gone.
But there's word in the market saying that further barriers are being written over the last two days with strikes as low as 103. That's something to consider if the market tips the scale and falls below 105.
But for the time being, consolidate away.
