The code you wrote is bugged :
return (diff < EPSILON) && (-diff > EPSILON);
The correct code would be :
return (diff < EPSILON) && (diff > -EPSILON);
(...and yes this is different)
I wonder if fabs wouldn't make you lose lazy evaluation in some case. I would say it depends on the compiler. You might want to try both. If they are equivalent in average, take the implementation with fabs.
If you have some info on which of the two float is more likely to be bigger than then other, you can play on the order of the comparison to take better advantage of the lazy evaluation.
Finally you might get better result by inlining this function. Not likely to improve much though...
Edit: OJ, thanks for correcting your code. I erased my comment accordingly