All eyes are on the European Central Bank's meeting next week, with many analysts expecting further accommodative measures to be unveiled, which could see the euro weaken.
But not all are convinced that monetary easing could signal the end of the rally which has seen the euro gain 4.2 percent against the dollar in the last 12 months.
"I think that the euro is fundamentally strong," Klaus Wiener, head of tactical asset allocation at Generali, told CNBC. "Contrary to what many people believe, we see capital inflows into the euro area, and quite a lot actually, given the fact that we have improvement in growth."
Analysts are speculating over whether the European Central Bank (ECB) will follow its key interest rate cut in November with further action in March.
While the euro zone economy showed signs of further recovery in the fourth quarter of 2013, growing by 0.3 percent, low inflation continues to be a concern. Inflation came in at an annualized 0.8 percent in January for a second consecutive month, way below the ECB's 2 percent target and fueling fears of deflation.
(Read more: Euro soars as Draghi plays down deflation talk)
ECB President Mario Draghi has repeatedly said the central bank is willing to take action if necessary. Nonetheless, earlier this month he said policymakers needed more information on the "complex" economic picture before taking any decisions.