EUR/USD: Options market turned most bullish in a month the last week
|One-month risk reversal (RR) for the EUR/USD, a gauge of calls to puts, reversed the previous two-week downside after the US Nonfarm Payrolls (NFP) propelled the weekly RR.
This goes hand-in-hand with the EUR/USD pair’s latest run-up. However, the currency major recently consolidated some gains amid the US dollar pullback from the multi-day low.
Risk reversals flash the +0.025 level for the last week, favoring EUR/USD bulls, according to the data provided by Reuters. The positive reading indicates call options are drawing higher premium (option price) than put or bearish bets.
Technically, multiple hurdles test EUR/USD bulls below 1.2210 but April tops of 1.2149 become the key near-term support to watch during the quote’s further pullback moves.
Also read: EUR/USD: EU vaccine deal helps extend US NFP-led run-up to fresh multi-day top towards 1.2200
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.