This is the reason for the Euro strength lately " European banks are paying ahigher premium to swap dollars for euros in money markets,reflecting a squeeze on liquidity as the year-end approaches and as banks stash cash before a European Central Bank review."
I have been bearish for while, from 1.3600 areas, and that didn't work well so far. I remain bearish and believe the EURUSD is the process of topping and will spend 2014 lower. I might be totally wrong, it's OK so long I manage risk appropriately.
I am cautiously bearish on this pair. In the short term, yes I can see this pair hitting 1.36, or perhaps another rally to 1.396 - 1.40 before hitting 1.36. But in the medium term, there's a possibility this pair is hitting 1.44 - 1.45 before USD finally bottoms out and starts rallying