EUR/USD is rebounding on hopes that credit markets will thaw more quickly now that the Fed has stepped into the commercial paper market. Bill Gross was just on CNBC and said he expects Libor rates to fall very rapidly now that that program is in place.
EUR/USD rebounds will likely run into supply on rallies as central banks around the world intervene to support their local currencies against dollars and sell some of their EUR/USD holdings to help keep reserve asset allocations intact.