The implied volatilities of ATM contracts of this the pair are flashing at around 9.15% for 1w expiries and above 10% across longer tenors.

Delta risk reversals negative ticks signify the hedging positions are well equipped for downside risks over the longer period of time.

From almost last one year we've been seeing the pair oscillating within stiff sideway trend (ranging 1.1480 to 1.05 levels).

For today, after a long lasting flurry of bearish effects, the pair has surged to 1.0711 (compare this with the strikes of 1.0890 in contracts expiring on next Wednesday in mkt pinned risk), Wednesday’s 11-month trough of 1.06651 as dollar losing traction today, however, remained closer to the multi-year highs.

If you consider long term euro's valuations then you would come across the convergence between spot curve, market pinned risk and risk reversals (see spot/market pinned risk/risk reversal relation in the diagram).

The FxWirePro’s weighted average dollar spot index that measures hourly performances of the dollar against a basket of 7 currencies, the USD has been fluctuating during the course of the day but gaining the traction for upside again ahead of today’s data streaks of economic data and the speech by Federal Reserve Governor Janet Yellen.

As you can see in the chart, we are close to major support levels, with the USD trade-weighted index heading toward range lows.

We have divergence developing in the intra-day studies now and as such a greater risk of a correction in the near-term from these levels.

US rates have paused for the last few days too, suggesting the USD may have got a little ahead of itself. 1.0840 is intra-day resistance, while a move through 1.0930-1.0975 is needed to do damage to the current bear trend.

Ultimately we have been open to the entire contracting range since March 2015 as a consolidation within the long-term bear trend. We are therefore on high alert for a breakdown through the key 1.0600-1.0450 lows, opening a potential move towards parity.