Barclays analysts: Brace for another leg of appreciation in dollar, go for short EURUSD

While many analysts suggest the greenback has topped out, currency analysts at Barclays consider there will be a long-term strength in the dollar, especially against the euro.

While the global environment has been cooler and dissuaded markets that the dollar will be strong in the second quarter, "we expect market interest to pick up again, as we envision another leg of appreciation, particularly against the EUR, in the coming months,” the analysts say.

“Short EURUSD remains our flagship recommendation and still our favored way to express USD strength.”

Diverging monetary policy in the United States and Europe will keep lending support to the dollar against the euro.

“We continue to expect EURUSD to trade through parity in early 2016,” they say.