Again and again EUR/USD looks like it is going to break to the downside as global gloom and doom sparks fresh waves of risk aversion. AnD time and time again, the single currency rises like a phoenix with dealers quickly scrambling to cover shorts, fearful of Chinese buying and of the ECB trying to stave off a currency crisis to keep its bond markets from blowing up.
EUR/USD has triggered stops upon breaking back above the 1.2785 level and now trades at 1.2815. 1.2880 and 1.2940 are resistance near-term.