The EUR/USD may see more upside in Asia as "investors have been waiting for a trigger to take profit in a massive build up of EUR short positions and we saw that trigger overnight in the good Italian, Spanish bond auctions," says BNZ FX Strategist Mike Jones.

He says now that process has been kick-started we may well see "folks continue to pare those short positions in EUR on the day." However, general market sentiment will also be key and if Asian equities put in a strong performance "that will add to the buy EUR theme."

The pair is at 1.2827. Jones puts support at 1.2705, with resistance is at 1.2855.