On the verge of French and German manufacturing PMIs, today Euro's early market focus is likely to be on these 'flash' estimates of Eurozone PMIs for November.

The Euro zone aggregate preceded by French and German figures.

The data will provide a further read of activity trends in Q4 against a backdrop of comments from ECB officials on whether and what form of further policy easing may come at its meeting of 3 December.

Put holders must be happy with the current levels of this pair (EURAUD spot fx at 1.4805) because on 8th October we advised OTM shorts with 4 day expiry which must have definitely booked profits as the price moved above and 2 lots of 15D longs of ITM puts on 15th October that should be on the job with prevailing dips, for now more downside potential is seen which is underway.

The pair has broken channel line support earlier at around 1.5917 and 1.5506 levels and we can get long term bearish trend confirmed with 61.8% retracement after the formation of gravestone doji pattern in late August.

We believe with this bearish indication the pair to either remain stagnant or drag towards 1.4390 levels.

EURAUD spot FX is currently trading at 1.4805, from here onwards our 2 lots of 15D longs on ITM strike vega puts would start maximizing profits considering the current short term downtrend.

The recommendation for now is Vega back spread which is generally dominated by the long options the more time there is to expiration and the closer EURAUD is to the strike price of the long options.

15 days of expiration on longs sets up generally the more positive vega the back spread. The reason for this is that far from expiration, the difference between the vega of one strike and the next is relatively small. This is an income strategy. You are looking for a net credit if the pair stays within a range or rises.

In our opinion this pair creates best swing trading opportunity, it is better to use these rallies and stay calm with earlier ITM long puts and any minor upswings can be utilized OTM put writings.