EUR/USD options market turns the most optimistic since November 2020 as the weekly gauge of bullish bets (call options) over put options (bearish bets), known as risk reversal (RR), jumps to the highest in seven months.
That said, the EUR/USD RR prints +0.308 levels for the current week, the highest since early November, per Reuters data. While posting the most bullish view, the options market gauge also snaps the previous two-week downtrend.
Although the data fails to offer any immediate reaction, it does back the EUR/USD weekly run-up, the first in the last four. It’s worth noting that the quote picks up bids to 1.1930 during early Friday after posting mild gains the previous day.
Technically, EUR/USD bulls need a clear upside break of 200-day EMA, near 1.1945, to extend the recovery moves from last Friday.
Read: EUR/USD Price Analysis: Bears seeking a daily downside continuation