The Forex Trading Compass For EUR & USD

Welcome Traders to today’s FREE Forex outlook!

As always Winners Edge Trading is here to provide you with great Forex analysis – free of charge.

And I think you are going to love the analysis today!

Don’t forget to check out yesterday’s article as it analyzes the USDCAD and EURGBP upside break. Also look at Nathan’s video analysis for more information on that.

EURAUD

Maybe some of you didn’t notice, but the EURAUD has achieved a great achievement! In case you missed, no problems. That is why we are here to help you warn of great Forex trading opportunities. In this case the Forex analysis and Forex outlook is for free 🙂

The EURAUD has broken the major top and resistance of 1.3190! And this didn’t happen out of the blue of course….

The EURAUD has been climbing to the upside for quite a while now. Previously breaking 2 major weekly trend lines…

The Euro’s path to fame started at the beginning of April after a 618 Fibonacci retracement bounce and the currency pair has been going up non-stop.

In the meantime the currency has travelled more than 1,000 pips!

MAY 23 2013 DAY EURAUD

But there could be plenty of pips still left:

–          The Fib targets of the 618 Fib retracement bounce are at the 0.272 target of 1.3625.

–          And at the -0.618 target of 1.4180.

The currency looks well setup for upside, but the question is whether the EURAUD will continue its path up immediately or after a small pullback?

One way of measuring that is to see how today’s candle closes:

1)      Does it have a massive wick on top? Then the chances of a correction are higher.

2)      Does it have a close near the daily high? Then the chances of continuation are higher.

In the intermediate future the currency should push up towards the -0.272 target, even if there is a small pullback in between.

Once that target is hit, we could see a bigger pullback and then another wave up to the -0.618 target. See this screenshot here below for more details.

MAY 23 2013 DAY EURAUD 2

The purple lines indicate the double move up. And the yellow line is connecting the 2 purple moves up. The current move up could only be the first leg of the entire triple move up. That could happen when the EURAUD hits the -0.272 target, then retraces to for example the 500 Fib and moves up again to the -0.618 target.

Let us continue our Forex analysis and outlook with the USD.

US DOLLAR

Needless to say, the USD has had a lot of strength in the recent weeks. Especially versus the AUD, as predicted by Chris, the writer of this article 😉

The USD, however, is running into some resistance currently. The EURUSD is having a slight upside day so far which does not come as surprise considering the fact that the currency was right at a major support levels.

MAY 23 2013 DAY EURUSD 2

The EURUSD is still stuck in a wedge and that could break to either side. I will follow price where ever it breaks out. But my bias is still to the upside, contrary to many Euro bears. 🙂

Before taking any long-term trades however, I will await a break of the wedge. Take a look at the screenshot down below where I am planning to go short and long on the EURUSD.

MAY 23 2013 DAY EURUSD

Also with the GBP, the USD had some continuation problems. As expected the GBPUSD bounced off the 1.50 support level to the upside as well. Here too I am expecting some upside corrections back to the 1.5180-1.5280 area, after which the currency should see some resistance kick in that pushes the Cable back lower.

MAY 23 2013 DAY GBPUSD

By the way, all of these key levels were clearly communicated in our live trading room, so make sure to join our live Forex trading room! Today I actually prevented 2 traders taking a EURUSD short and a USDJPY short (both trades would not be doing well now). So make sure to check that here, because the live trades, advise, and tips are priceless!! http://winnersedgetrading.com/trading-room-page/

And last but not least, the AUDUSD also bounced to the upside in a relief correction rally, straight off the 0.9580 – 0.9600 support levels, which was my first short target before the bigger 0.920 target.

Here too I would not be surprised to see the AUDUSD make a corrective pattern back to the 382 Fib at 0.99 before heading back down to 0.94 and then 0.92.

Make sure to check today’s day candle. Currently it is looking like a pinbar reversal candle. If the day candle stays bullish like it is now, then that could be the first signal that some upside correction is about to materialize. I would not expect a bigger correction than 0.99 or 1.00 however.

MAY 23 2013 DAY AUDUSD

Hope you did indeed enjoy this free Forex analysis! If you did, then please drop a comment down below!!! 🙂 Hopefully you can capitalize on the Forex outlook provided here above.

And thank you again for sharing this article and reading this Forex outlook!!! Very appreciated!!!!!!!!!!

Once again, in our trading room we will not only take trades live in our room and show our awesome and amazing Double Trend Trap Strategy, but we will also give you great warnings and tips and information regarding major key levels! http://winnersedgetrading.com/trading-room-page/

Good Trading!!

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