EUR/USD risk reversals: Bearish bias weakest since April 24

• Risk reversals continue to retrace bearish bias.
• Short-term bottom in place in EUR/USD.

The EUR/USD one month 25 delta risk reversals (EUR1MRR) continue to retrace bearish bias, adding credence to EUR's recovery from 1.1822 to  1.1960.

As of writing, the risk reversals are being paid at 0.45 EUR puts - the level last seen on April 24. The gauge has recovered from the recent low of 0.70 EUR puts, indicating the falling implied volatility premium or falling demand for the EUR puts.

EUR1MRR