EURUSD -- 1.1568
The trading range in EURUSD narrows. The currency pair is capped between 1.1550 (monday low) and 1.1609 (tuesday high) for now. A high deviation upwards or downwards from expected US CPIs (consensus 5.3% YoY) this afternoon could lead to a breakout both ways. Some new dynamics in FX markets would be helpful anyway.
If you want to avoid two-way risk and speculate on rising volatility I advise to go for long straddle or hedged call/put. The implied vol reflects the low realized vol of course but in a long-term comparison it looks reasonable cheap. Choose maturities below 3 months if you want to play gamma. For vega trades I recommend the 6 months tenor.
Volatility Surface (source: cme group, own representation)
Technical levels
Resistances
1.1675 trendline
1.1665 upper Bollinger band
1.1653 50 ema
1.1609 high of 09nov
Supports
1.1550 low of 08nov
1.1524 several lows
1.1513 low of the year
Good luck,
Sebbo