EUR/USD 1.1650 Expiry Caps Gains as Iran Deal Watch Persists

On May 27, EUR/USD faces a 1.1650 option expiry that could cap further gains while traders await confirmation of any US-Iran diplomatic breakthrough. The move began May 25 when a NYT report on Iran sparked a 0.6% drop in the US Dollar Index, lifting EUR/USD above the 1.0900 resistance to a three-week high amid thin holiday liquidity. Expiries clustered at 1.1600-1.1650 across May 25-27 have since acted as pinning points, with markets wary of a buy-the-rumor sell-the-fact reversal if a deal materializes.