EUR/USD has traded to a high of 1.3724 already this morning but has now slipped back towards its NY closing level just below 1.3700. The market still smells a little of short-covering, especially on the crosses, and this will impact on the EUR/USD in the short-term. Sovereign debt issues will weigh and the fact that the G20 is now out of the way may be a short-term positive for the USD.
Therefore we have conflicting forces at work but if EUR/JPY short-covering continues then that will be the dominant factor for this session. Hourly technical support/resistance is at 1.3660/1.3775.
