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