A streak of positive economy data has paved the way for Fed interest rate hike, even US Dollar index had broke through 100 yesterday under the undecided interest rate hike. It is expected to strike higher before the first interest rate hike. Meanwhile, policy makers from European Central Bank are managing to broaden QE bond buying since QE policy is inevitable. EUR/USD hit a seven-month-low yesterday.
EUR/USD
As there appears to be a slight dropdown during the morning session, we are cautious of buying put options. But since the price is approaching the previous low reading, put options should be gradually suspended and switched to call options.
Support：1.0520/1.0460
Resistance：1.0630/1.0651
GBP/USD
Seen from the 1-hour chart, the MACD is lingering in the 0 axis that indicate a possible bullish sentiment. Since the GBP/USD continues to rebound during the morning session, call options can be purchased with caution. Meanwhile, we believe it will bounce around during the daytime session as there exists considerable resistance.
Support：1.5064/1.4889
Resistance：1.5160/1.5180
USD/JPY
The direction of USD/JPY price movement is undecided yet. Therefore, we prefer buying call options with caution during the morning session, while put options can be purchased in the afternoon.
Support：122.54/122.23
Resistance：122.89/122.97
DISCLAIMER: All the information mentioned above is for reference only.