• EUR/USD remains trapped between key technical levels and a plethora of huge FX option strikes

• Bulls need a close above 55-dma 1.1647, but more importantly the 200-dma 1.1682

• 1.1668-1.1700 daily cloud adds resistance. Support 26, 22, 21 May lows 1.1617, 1.1589, 1.1577

• Hedging of huge soon-to-expire FX option strikes also strangling FX spot price of late

• 5-billion euros of strikes between 1.1600-50 expire 10-am New York/14:00 GMT Wednesday

• Lack of spot volatility has pressed FX option implied volatility levels to pre Mid-East conflict lows

• Related comment - Morgan Stanley urges investors to fade any dollar recovery
EUR=EBS


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