(As a slight foreword warning, these reports are usually lagging the market by a few days; ie the data was probably compiled late last week and the analyst wrote the report yesterday)
A note from the interbank market suggests that hedge funds have significantly increased their short bets against the EUR, selling EUR/USD, EUR/CHF, EUR/JPY and EUR/GBP. The main market buyers, especially in EUR/USD and EUR/GBP, have been Sovereign players. If the hedge funds are mounting a serious play, then they will aggressively sell rallies in the EUR and of course the Sovereigns will be buying dips as usual; yet more reason to stay in the range trading camp.
Although judging by the moves this morning already, it looks like some of the less-committed professional traders are throwing in the towel already.