EUR/USD: Risk reversal backs bearish bias below 1

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One-month risk reversal for the EUR/USD, a gauge of calls to puts, drops for the second consecutive day as per the options market data on Reuters.

The downbeat signals join the market’s anxiety ahead of the ECB meeting and the US Consumer Price Index (CPI) data for May to weigh on the EUR/USD prices by the press time, down 0.11% around intraday low of 1.2168.

That said, the risk reversal flashes the -0.025 level, favoring EUR/USD bears by the press time. The negative reading indicates put options are drawing a higher premium (option price) than call or bullish bets.

Technically, a bullish flag pattern on the daily chart, backed by recovering Momentum line in the positive territory, probes EUR/USD sellers.

Read: EUR/USD Forecast: Volatility set to resume with US inflation figures

Source fxstreet

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