EUR/USD is squeezing some of the large base of shorts on an intraday basis. Options-related bids were found at the 1.2580 level which stalled the downside momentum for the moment. Markets, being the cruel beasts they are immediately look to hurt the most people in the shortest period of time, and that looks like it could be accomplished today by a quick pop up through the 1.2645/50 area to squeeze out the weakest hands before continuing lower.
EUR/USD stalled just below the 1.2640 intraday resistance and now trades at 1.2625.