In the aftermath of Italian referendum and ECB decision to extend QE until end of 2017, Eurostoxx50 has exceeded a cluster of resistances in the 3100-3150 area and made a new high for 2016.
The upside is open as long as profit taking in the next days does not drive the index back below 3100 on a closing basis and so cause a fake break up.
Many analysts do consider european stocks as not overly expensive and that they will profit from a weakening EURO . One has also to keep in mind that current levels of Eurostoxx50 is 17% off its April 2015 high & respectively 30% / 41% off 2007 / 2000 Highs ; Right , the european financial and economic landscape was much different at that time !!
Long term Eurostoxx50 chart : In 2000 when the european index was at the top , EUR/USD was quoting around 0,90, at the bottom in 2009 , in the 1,30 -1,50 range … Where the EUR goes , …