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.

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.https://f3a36feb9ae7d96d50086cc309c9eeb9.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

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

”Source From fxstreet”

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