EUR/USD risk reversals: Bearish bias strongest since Feb. 23
The EUR/USD one-month 25 delta risk reversals (EUR1MRR) are being paid at 0.637 EUR puts - the level last seen on Feb 23.
Note, the risk reversals were being paid at 0.038 EUR calls two weeks ago. The turnaround from 0.038 EUR calls to 0.637 EUR puts indicates increased demand for the EUR puts (bearish bets)/the sentiment in the options market turned bearish in the last two weeks.
That said, the bearish bias may strengthen further in the near-term, given the EUR/USD seems to have found acceptance below the 1.20 mark and is also trading below the 200-day moving average (MA).