EUR/USD: Risk reversal snaps three-week downtrend

One-month risk reversal for the EUR/USD, a gauge of calls to puts, challenges the previous three-week declines if checking the weekly options market data on Reuters.

The upbeat signals add strength to the EUR/USD run-up since April but cautious sentiment ahead of Friday’s US employment figures test the bulls.

That said, the risk reversal flashes the +0.017 level, favoring EUR/USD bulls by the press time, according to data provided by Reuters. The positive reading indicates call options are drawing a higher premium (option price) than put or bearish bets.

Technically, the currency major pair keeps its bounce off 100-SMA while staying inside a one-week-old symmetrical triangle.

Read: EUR/USD Price Analysis: Off 100-SMA inside weekly triangle