EUR/USD: Risk reversal drops the most in May

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One-month risk reversal for the EUR/USD, a gauge of calls to puts, dropped the most in May on Wednesday. It’s worth mentioning that the options market catalyst drops for a third consecutive day during the aftermath of the US Consumer Price Index (CPI) showdown.

Read: Breaking: US annual CPI inflation jumps to 4.2% in April

This goes hand-in-hand with the EUR/USD fall that refreshed the weekly low on the previous day.

Risk reversals flash the -0.032 level, favoring EUR/USD bear by the press time, according to data provided by Reuters. The negative reading indicates call options are drawing lesser premium (option price) than put or bearish bets.

Technically, the currency major pair remains bullish unless breaking 1.2050-45 support confluence including 100-day SMA and an ascending trend line from March 31.

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