The Euro has managed to stage somewhat of a rally against the US dollar over the last 5 trading sessions against the US dollar, once again trying to break above parity but that may be a tall order this time around, and analysts from one of Britain’s biggest investment banks believe a new trend downward is just around the corner.

Analysts from HSBC believe that the recent strength in the US dollar is currently warranted, and they see nothing to change that in the short term and then greenback will still be favoured as a safe haven asset.

"The key components that have supported USD strength – soft global growth dynamics, fragile risk appetite and relatively higher US yields – should continue in the months ahead," says Dominic Bunning, Head of European FX Research at HSBC in London.

Looking ahead today, the main drivers of the EUR/USD currency pair will be a monetary speech by ECB president Christine Lagarde where she will set the stage for monetary policy going forward including any potential rate hikes

We will also see the release of industrial production figures from the Eurozone which are expected to hit the market at 0.6 percent which is a solid improvement against last month’s figure of -2.3 percent. If analysts are on the money, we may see the Euro receive a short-term boost.

But traders may also be wary of bidding the Euro too high a market participants await today's release of the US Federal Reserve minutes where they will provide an detailed explanation behind the announcement of the third 75 basis points interest rate hike. The minutes will also provide viewpoints of all Fed policymakers toward interest rate targets for bringing price stability.