The euro broke a key technical level of $1.3244 Tuesday, which was the 38% retracement level from the October to January drop in the exchange rate, Brown Brothers Harriman says in a research note Wednesday.

With that level taken out, the euro can now target the 50% retracement level, which is at $1.3435.

The euro is trading at $1.3279 in early Wednesday morning trading in New York, according to EBS via CQG.