Are we on the brink of a EURUSD rally?

The greatest fall in modern history 

The last 9 months have wiped away over 30% of the value in the Euro against the Dollar and with Goldman Sachs & many other analysts calling for further moves to the downside past parity and into 0.80 territory -  This post argues for a bottom above parity and for a potential move to the upside. 

The Turnaround call... (follow the banks)

HSBC currency analysts last week called time on the USD rally, after being one of the firsts to spot the Bull in 2013. As US inflation remains shy of its target - policymakers tolerance for this strength will not last for much longer. Furthermore, HSBC said that the USD is the most overvalued currency in the market ahead of the CHF. 

Fundamental pitfalls 
The thriving Dollar & huge outflows from the Eurozone (post tensions from Greece & other failing nations) have combined to fatigue the politically formed currency group. 

Forecasts of parity claim to be easily achievable as the recent momentum has pointed too - with the Euro continuing it's stage of decline. 

Is there any hope left? 

Short-term relief for this major has come from the recent economic data out of the US - seeing extremely disappointing Non-Farm Payroll figures & analysts pointing towards a more dovish stance from the FED later this evening. 

This lies key for future FOMC Interest Rate meetings and also discussions for low US inflation as the FED continue to stagnate their first interest rate rise in years. 

This week, retail sentiment for EURUSD and also GBPUSD has switched to a more "bullish" outlook as buyers eye 1.10 - technical outlook pictures further scope for near-term USD weakness. 

Are we ready to climb higher?

Near-term gains for the Euro should not come as a surprise - especially as commodity markets are turning green and the pressure from the CAD has been somewhat relieved ahead of today's BOC speech. 

A break of 1.10 or 1.095 would set the tone for this pair that is torn between ongoing ECN QE and a relentless run of US data on the other hand & A dovish FOMC may just be the catalyst to send this exchange into higher levels. 

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-Peace & Love guys

Anish