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EUR/USD put value highest since April 24, 2017

  • Euro's corrective rally on Monday failed to dissuade investors from buying the EUR put options.
  • The one-month 25 delta risk reversals fell to 16-month lows.

The EUR/USD one-month 25 delta risk reversals (EUR1MRR) hit a fresh 16-month low of -1.525 today, indicating the rising demand or the rising implied volatility premium for the EUR put options (bearish bets).

The EUR/USD pair defended the 200-week MA of 1.1357 and posted 0.35 percent gains on Monday. However, the investors are not impressed by the corrective rally and are likely expecting the spot to take out the key long-term MA support, the drop in the risk reversals indicates.

At press time, the EUR/USD is trading at 1.1407.

EUR1MRR

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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