BBH - "We had been persuaded by the potential double top in the euro near $1.34 and the divergence in the RSI that the dollar's gains were likely to broaden. However, news that the banks repayment of the LTRO funds was greater than expected, and the backing up of Euribor rates, pushed the euro through the ceiling. The next immediate target is near $1.35, which also corresponds with a 50% retracement of the euro's decline from its last attempt at $1.50 back in May 2011. The $1.3400 area should now provide support for the break out.
For medium and longer term participants this $1.35 area is important. It appears to be the neckline of a potential large head and shoulders bottom pattern that would, if valid, suggest a target near $1.45. More immediately, a convincing break of $1.35 could spur a move toward $1.38. We expect the Swiss franc to lag behind the euro in the move against the dollar."