Bearish Death-Cross Signal on Euro Urges Caution to Longs: Chart

The euro’s bearish trend may not be over. While the shared currency has rebounded almost 3 percent from a 10-month low that coincided with Italy’s political crisis, it formed a bearish technical pattern on the charts. The euro’s 50-day moving average has broken below its 200-day counterpart for the first time in more than two years, forming what is popularly known as a death cross. Still, being a lagging indicator, the pattern doesn’t always lead to further losses.