The euro could be set to rally to its high of last year against the dollar of $1.52, Royce Tostrams, technical analyst at Tostrams Groep, told CNBC Friday.
"The euro has been breaking above its high of mid-October at $1.40-$1.50, which is giving a buy signal. This will trigger a new rally into the euro against the dollar," Tostrams said.
The short-term target for the euro is $1.46, but over the next six to eight weeks the European currency could hit $1.51-$1.52, he said.
"We believe that interest in the euro is returning to the markets, so it will be a comeback of the euro against the dollar," he added.
Carol Harmer, chief market analyst for Mercury Forex and Charmer Charts, agreed that the euro is likely to gain versus the dollar.
"For the moment, there's nothing to suggest the euro strength is over… We're looking at $1.4625, which is the January high," Harmer said Thursday.
Meanwhile, the euro is also likely to rally against the yen after it breaks the resistance level 115.70 yen, according to Tostrams. The first target for the yen versus the euro is 122 yen and the second target is 125 yen, he said.