Forget all the fancy cross trades; the action right now is pure dollar short-covering. The macro trade has been short dollars versus nearly everything and that is now being unwound. EUR/USD is down to 1.4235, USD/JPY is above 97.00 and even the commodity currencies are taking it on the chin. The dollar index is up more than three-quarters of a percent as the trading day grows short in Europe.
1.4225 is next support for EUR/USD with more at 1.4205.
