EUR/USD: Option markets remain bullish for fourth consecutive week ahead of ECB

One-month risk reversal for the EUR/USD, a gauge of calls to puts, remains positive for the fourth consecutive week ahead of the key European Central Bank (ECB) meeting on Thursday.

This goes hand-in-hand with the EUR/USD pair’s latest recovery. The major currency quote takes bids around 1.2045, up 0.07% intraday, by the press time.

Risk reversals flash the +0.020 level for the current week, favoring EUR/USD bulls, according to the data provided by Reuters. The positive reading indicates call options are drawing higher premium (option price) than put or bearish bets.

Technically, Gravestone Doji’s lead over the Dragonfly Doji candlestick, on the daily chart, suggests the restoration of the overall bullish trend, which was tested on Tuesday. However, 100-day SMA guards pair’s immediate run-up around 1.2055.

Read: EUR/USD Price Analysis: Complex candlesticks trouble bulls above 1.2000, ECB in focus