Key FX option expiry levels to watch on October 29

Only a few notable expiry levels stand out on the day.

The first expiry is for EUR/USD at 1.1100, roughly 30 pips from the current spot. Currently, the pair is holding support near the October 14 low of 1.1111. That level serves as a more immediate downside target. The expiries add an extra layer for sellers to overcome as they aim for further declines.

If the bias toward a weaker EUR/USD persists, the 1.1100 expiries could slow rapid moves lower in the coming session, provided no major market surprises occur as traders continue to digest the Fed decision and the mix of big tech earnings from overnight.

In addition, USD/CAD has an expiry at 1.3965, also within 30 pips of the current price. These expiries may act as a magnetic pull, especially if the pair struggles to hold above 1.4000. The October 23 low near 1.3968 adds further focus, giving sellers another obstacle as they aim for a decisive break below 1.4000 to end the week.

More broadly, traders remain focused on interpreting the Fed's decision from yesterday, alongside Alphabet's poor earnings performance and its impact on tech stocks and overall risk sentiment. Bond markets are also uneasy, with 10-year Treasury yields at 5.00%. This caution persists as traders await the upcoming US PCE inflation data.

Beyond the expiries, these factors will be the main drivers of trading sentiment for the day ahead.