EUR/USD closed above 50-day MA, risk reversals adopt a bullish bias

• EUR/USD closed above the 50-day MA yesterday.
• Options market turns bullish on the EUR.

Risk reversals

• The one-month 25 delta risk reversals gauge jumped to 0.225 yesterday from the previous day's reading of -0.025.The move into the positive territory indicates EUR calls are more in demand.
• Also, the one-month at the money option volatility spiked to 7.08 yesterday; its highest level since mid-October.

This, coupled with a technical break above the 50-day MA indicates the EUR/USD could extend gains to 1.1880 (Oct. 12 high) - 1.19 (psychological level).