The euro was slowly grinding higher in US trading but quickly gave back a large portion of its gains in a quick 25 pip fall in the past few minutes. The drop coincided with the European equity close. It’s an unusual to see timed selling at the European stock market close but there was no news at that moment.
A good reason to sell EUR/USD comes from the chart, where the 55-day moving average crossed below the 200-dma today. For what it’s worth, the 50-dma also crossed below the 200-dma today. It’s a classic death cross and the first time the averages have crossed over since November.
