Try as we might, EUR/USD is holding a bid in the high 1.3880s. Traders reported central bank demand in that area first thing this morning and it seems to still be around as midday approaches. Look for European dealers to trim intraday short-positions before heading home based on the price action. Sellers remain on rallies to the low 1.3950s near-term.
Those looking to set medium-term EUR shorts should hope for a short-covering rally toward the 1.3975/80 area or perhaps as high as retest of the broken neckline in the head and shoulders noted earlier.
