EUR/USD - Downside bias strongest since May

• EUR/USD risk reversals show strong demand for EUR puts. 
• Add credence to decline in the EUR/USD spot. 

The EUR/USD one-month 25 delta risk reversals gauge fell to -0.725 today - the lowest level since May 5. It indicates EUR puts are claiming significant premium over EUR calls. Clearly, the options market is bearish on the common currency. 

The data add credence to the bearish 5-day MA and 10-day MA crossover on the EUR/USD chart and the drop to 1.2248 (lowest since Jan. 23). 

EUR one-month 25 delta risk reversals chart