EUR/USD has lagged the pack this morning but it is playing catch-up late in the European session, moving up to the low 1.4230s as another round of stop-loss buy orders is triggered.
Short-covering remains the theme after momentum traders got caught short with little downside follow-through upon the 1.4100 break overnight. Asian buying helped turn the tide, and like in cable, we would not be surprised to hear talk of Asian selling this afternoon, booking profits.
1.4264 is next resistance, the 50% retracement of the 1.4445/1.4087 decline.
