EUR/USD: Options market turns most bullish in three weeks ahead of Fed

One-month risk reversal (RR) of the EUR/USD, a gauge of calls to puts, prints +0.060 readings for Tuesday, per the latest data from Reuters.

The figures suggest that the pair traders are the most bullish since September 09 when the RR marked +0.132 level. It’s worth noting that the positive RR level also snaps the previous three-day downtrend.

However, the EUR/USD pair’s latest price action refrains from portraying the bullish bias, down 0.06% intraday around 1.1718.

The quote’s latest moves could be linked to the previous candlesticks confusing traders with mixed signals around the monthly low. Though, July low near 1.1750 restricts the short-term upside of the EUR/USD prices while bears need to provide a daily closing below 1.1700 to challenge the yearly low surrounding 1.1665.

Read: EUR/USD Price Analysis: Bulls move in and eye 1.1750/60 targets

A more important catalyst, at least for now, is the Federal Open Market Committee (FOMC) monetary policy decision announcement by the US Federal Reserve (Fed). Recently mixed data contrasts the Fed policymakers’ hawkish bias to confuse traders. Goldman Sachs recently backed the Fed tapering announcement and challenged the gold buyers.

Read: Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot