- Today, the Euro Index fell to a new weekly low at 1040.5.
- This week, we have seen a slight bearish consolidation in the yen index.
Graphical analysis of the Euro index
Today, the Euro Index sank to a new weekly low at 1040.5. Shortly after, we saw the beginning of a bullish consolidation and the recovery of the index above 1042.0. We have been under strong bearish pressure since Tuesday, and this slight recovery today does not inspire the Euro Index to start a more concrete recovery. Based on that, we expect to see a further pullback to a new monthly low.
Possible lower targets are the levels of 1040.0 and 1039.0. For a bullish option, we need positive consolidation and stabilization of the euro index above the level of 1043.0. After that, the chances of the index starting a new bullish impulse and continuing its growth on the bullish side increase. Possible upper targets are the levels of 1044.0 and 1045.0.
Graphical analysis of the yen index
This week we have seen a slight bearish consolidation in the yen index. Today, following the news about US inflation, the index suddenly returned to the support at the level of 755.3. The data was positive for the dollar, which caused the rest of the currencies to start to retreat. The yen did the same, retreating below the EMA 200 moving average. Now, we need to go up again if we want to continue the previous sideways consolidation.
After that, we expect to visit this morning's resistance zone. Possible upper targets are the 758.0 and 760.0 levels. For a bearish option, we need a negative consolidation and a breakout of today's low. Thus, we drop to a new low and confirm the bearish momentum on the chart. All that remains for us is to see a further pullback of the yen index to the bearish side. Possible lower targets are the 754.0 and 752.0 levels.
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