The euro turned negative during the American session and erased gains versus the US dollar. EUR/USD dropped from 1-week highs at 1.1058 and bottomed at 1.0992. Currently is hovering around 1.1000, modestly lower for the day, headed toward the first daily loss after rising during the previous four trading days. EUR/USD retreated as stocks in Wall Street recovered ground. The Dow Jones is down but marginally (-0.08%), after moving away from the lows. In Europe, stock indexes finished lower with declines between 0.50% and 1%. EUR/USD retreating from the 20-DMA The rally of the euro from 1.0820 (March low) was capped today slightly below the 20-day moving average that stands at 1.1060. The failure to keep rising above that level could signal a short-term peak. The Strategy Team at Westpac expects the pair to continue to lose ground under 1.0995. “We are wary that Draghi will struggle to leapfrog expectations but any squeeze in EUR is likely to be short-lived - the FOMC statement a week later is likely to sound more hawkish noting that future meetings are "live" and the risks are balanced.” For more information, read our latest forex news.