The rally in the euro continued full force on Wednesday as it marked new highs against the dollar and the yen.

Specifically, EUR/USD topped 1.35 for the first time since December 2011, while the Eurozone single currency reached its highest level since April 2010.

Just yesterday, Unicredit announced changes to its currency forecasts. The broker now sees the euro hitting $1.40 by the end of this year and $1.43 by the end of 2014. These analysts also note that they see the Eurozone single currency trading at 131 yen by year-end and 143 yen at the end of the following year.

"The great risk normalisation currently under-way, helped by improved data across the euro area are the main drivers behind these changes.

"At the same time, we do not think it likely that the ECB will resolve to any verbal intervention because these levels do not pose a serious risk to the euro area recovery and Mr. Draghi (ECB president) has already stated that the currency is not a policy target," Unicredit said in the FX note.

Meanwhile, technical analysts from Web Financial Group also noted the rally seen in the euro in a report published yesterday as well.

These experts don't rule out the possibility of seeing the currency hit $1.42 in the following months. However, they recommend placing a stop-loss at the lows of the recent lateral movement at $1.3257.

JM

Related share prices