- Since the beginning of this week, the Euro index has been in a downward trend.
- Following last week's sideways consolidation, the yen index is looking set to move higher this week.
Graphical analysis of the Euro index
Since the beginning of this week, the Euro index has been in a downtrend. Last week was marked by sideways consolidation. Today, we see stronger bearish impulses and a break below the EMA 200 moving average and below 1049.0. We are now at 1047.9 in pure bearish momentum and expect to see a further decline and the formation of a new daily low. Possible lower targets are the levels of 1047.0 and 1046.0.
In the last hour, we have broken last week's low, which further increases the pressure on the Euro index. For a bullish option, we first need a positive consolidation and stabilization above the 1048.0 level. If we succeed in doing so, we will continue on the bullish side and rise back to the EMA 200 moving average. A move above it would be a success for the Euro index, as it would then return to the positive side. Possible higher targets are the 1050.0 and 1051.0 levels.
Graphical analysis of the yen index
Following last week's sideways consolidation, the yen index is on the horizon for a bullish move this week. At the beginning of the Asian session, we had a bullish gap as a first step to strengthen the bullish option. Since then, the index has been moving in the range of 760.0 to 764.0. It is still on the positive side, but needs an upward push to continue the recovery. Possible higher targets are the levels of 766.0 and 768.0.
For the bearish option, we need the yen index to fall to the daily opening price of 758.4. With that step, we will close this morning's bullish gap, strengthening the bearish momentum for the continuation of the pullback. New support awaits us at the 765.0 level on the 200 EMA. Possible lower targets are the 754.0 and 752.0 levels.
!function (f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function () {
n.callMethod ?
n.callMethod.apply(n, arguments) : n.queue.push(arguments)
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = ();
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t, s)
}(window, document, ‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘504526293689977’);
fbq(‘track’, ‘PageView’);
