EUR/USD options market bias has flipped bullish, risk reversals show

On Thursday, EUR/USD one-month risk reversals (EUR1MRR) crossed above zero or flipped bullish to euro calls – the first positive reading since March 11. 

It was trading at 0.025 in favor of call options or bullish bets, which give the holder the right but not the obligation to buy the underlying asset at a predetermined rate on or before a specific date. 

The move coincides with EUR/USD's rise to 1.10, which has put the bulls back into the driver's seat, according to technical charts. 

The metric bottomed out at -3.85 on March 23. Risk reversals trade below zero when put option or bearish bets draw greater demand than calls. 

EUR1MRR