FX.co ★ Technical analysis of EUR/USD for April 26, 2016

EUR/USD is trending upwards where new higher highs and higher lows are printed. There was a massive resistance area between 1.1000 and 1.1060 that was successfully penetrated. I've applied the Fibonacci retracement indicator to the corrective wave down where (1.1060) was rejected after the breakout.

Price broke above the R1 (1.1320) resistance which is the 161.8% retracement level but never tested either 261.8% nor 361.8% levels. Today, EUR/USD rejected the S1 (1.1220) support and immediately started to move up.

This tendency is likely to continue, so consider buying EUR/USD on the R1 (1.1320) breakout, targeting either R2 (1.1480) or R3 (1.1640) as a final upside target. The stop loss should be well below S1 (1.1220).

Support: 1.1220, 1.1060

Resistance: 1.1320, 1.1480 1.1640