FX.co ★ EURUSD reaches Fibonacci extension target.

EURUSD is trading around 1.1465 having broken above 1.14 and out of the bearish medium-term channel. The recent sideways consolidation has been broken to the upside. Price has reached the 100% extension of the first upward reversal.

Black lines- bearish channel (broken)

Green line- equal size upward movements

Blue lines- triangle consolidation phase

Red lines - Fibonacci extensions

EURUSD has provided us with a bullish signal by breaking out of the bearish channel. A pull back and back test of the previous resistance and now support at 1.14 is expected. Bulls do not want to see price break below 1.14 as this will increase chances of a fake breakout. EURUSD bulls want to see price continue making higher highs and higher lows. Bulls want to see price push above 1.1480. Next upside target is at 1.1592.