EUR/USD: Most Bullish 10 Weeks of Options Market

Good Days are Finally Here

The Risk Reversal over the course of a month for the EUR/USD trading pair has gained its highest rise since the 26th of November 2021, according to the recent data released by the options market.

Taking note of that, the daily Risk Reversal numbers for the first day of February climbed up to +0.110 as it continued on the rebound path from the 31st of January’s high closely note. The weekly numbers that came in also mirror a bullish disposition that had a +0.210 level following a decline for two straight weeks previously.

It should also be noted that the inflationary expectations of the US, as calculated through the ten-year breakeven inflation rate according to the St. Louis Federal Reserve data, dropped off a two-week high. The data join the number of more stringent US data used to call traders to question before the fast signaling to the expected US Nonfarm Payrolls on Friday. It is the ADP Employment Change in January, which 207,000 is expected compared with 807,000 before it.

The EUR/USD pair prices printed a 4-day gain at the weekly gain at 0.06% to get near 1.1280 at the least point.

Earlier On 

On Tuesday, the pair went higher near 1.1270 after three previous days of gain in the earlier Asian trading sessions. The uptrend of the leading pair followed Monday’s positive break from a continuous descent line of three straight weeks. It gained support at around 1.1205.

The bullish disposition later had the need for support from RSI and MACD to be around the 38.2% Fibonacci retracement position for the middle of January.

It should be noted that EUR/USD buyers aimed for a 50% Fibonacci retracement around 1.1300 as a mid-term target in the course of the advance. Nevertheless, a coming together of the 100 and 200 SMA around 1.1315-20 is likely to be difficult for the trading pair to penetrate.

While at that, retracement opportunities are being elusive till the ability to go beyond the support level and 23.6% Fibonacci retracement level both get near 1.1200.

As a result of that, the annual low points around 1.1100 and 1.1120 benchmark may draw EUR/USD heavy investors before the April 2022 peak around 1.1020.

The effect of the Federal Reserve’s monetary policy to increase interest rates by April continues to linger on the US dollar and its high-value trading pairs, with market players still expecting up to four more rate increases this year after that.   

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