As Marc Chandler, Global Head of Currency Strategy at BBH notes: "News that the banks repayment of the LTRO funds was greater than expected, and the backing up of Euribor rates, pushed the euro higher. 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."
For medium and longer term participants this $1.35 area is key, Marc says; "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" he adds.