EUR/USD fails to justify fourth weekly jump in risk reversal on technical selling around 1.1950

EUR/USD prints heaviest daily losses in April, recently offered near intraday low.
Risk-off mood, US dollar bounce back the consolidation.

Anil Panchal FXStreet

EUR/USD refreshes intraday low to 1.1951, down 0.33% on a day by the press time of early Monday. In doing so, the currency major pair refrains from respecting the options market’s bullish bias.

One-month risk reversals of EUR/USD, a gauge of calls to puts, rose for the four consecutive weeks by the end of last Friday.

Risk reversals flashed the +0.025 level, favoring EUR/USD bulls, according to data provided by Reuters. The positive reading indicates call options are drawing higher premium (option price) than put or bearish bets.

While searching for catalysts, the risk-off mood could be traced for the pair’s latest losses. Among the risk-negative factors, challenges to US President Joe Biden’s $2.25 trillion infrastructure spending and the coronavirus (COVID-19) worries in Europe and Asia back the downbeat mood.

Against this backdrop, S&P 500 Futures drop 0.25% while the US 10-year Treasury yield drops 1.2 basis points to 1.562% by the press time.

Given the lack of major data/events, EUR/USD may respect the US dollar’s bounce. Moving on, traders should keep their eyes on the risk catalysts for fresh impulse.

Double-top confirmation backs intraday sellers...

Technically, the pair confirms “double-top” bearish chart formation on the hourly play and directs EUR/USD sellers toward the 1.1900 threshold.

Read: EUR/USD Price Analysis: Teases double-top bearish formation below 1.2000

EUR/USD

Overview
Today last price	1.1946
Today Daily Change	-39 pips
Today Daily Change %	-0.33%
Today daily open	1.1985

Trends
Daily SMA20	1.1853
Daily SMA50	1.1963
Daily SMA100	1.2058
Daily SMA200	1.1913

Levels
Previous Daily High	1.1995
Previous Daily Low	1.195
Previous Weekly High	1.1995
Previous Weekly Low	1.1871
Previous Monthly High	1.2113
Previous Monthly Low	1.1704
Daily Fibonacci 38.2%	1.1978
Daily Fibonacci 61.8%	1.1967
Daily Pivot Point S1	1.1959
Daily Pivot Point S2	1.1933
Daily Pivot Point S3	1.1915
Daily Pivot Point R1	1.2003
Daily Pivot Point R2	1.2021
Daily Pivot Point R3	1.2047

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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