EUR/USD: As Correlations Stand, Higher Levels Not Justified

The current outlook for the Euro looks fairly negative if one considers where correlated assets are trading. As we represent in red boxes, which imply a negative input, no asset with a strong correlation to the pair justifies higher levels. What this implies further strength in the currency might be seen as selling opportunities. We've also drawn the ECB-led supply zone as a level of reference expected to be a line in the sand for the Euro going forward, as long as valuations continue to point to a lower exchange.