The dollar rallied further yesterday, bringing the EUR/USD back down to a multi-year trend line.  In early April the dollar pierced through a downward sloping trend line near 1.42 at the time and now is retesting these levels.  While this could provide some sort of support, our take is that the dollar's strength here, partially due to overly negative USD sentiment and the commodity bubble burst, could see the EUR/USD down closer to the 1.35 area in the near future.

More on this throughout the day.

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