EUR/USD: options markets points to further upside

In view of CME Group’s preliminary figures, activity for the 6EU7 contract expiring on August 4 shows OTM (‘out of the money’) Puts rising by 798 contracts vs. an increase of 68 contracts ITM (‘in the money’).

In addition, ITM Calls dropped by 74 contracts and OTM Calls raised by 538 contracts. The Put/Call ratio moved to 1.03.

EUR/USD keeps the bullish outlook intact

Another increase of ITM Calls plus cheap insurance against an unexpected pullback in EUR/USD via a build in OTM Puts keeps sustaining the view of extra gains in the near term. Sentiment among traders remains (very?) bullish and the up move is not giving any sign of exhaustion, at least in the very near term and despite spot navigating overbought levels.