- The movement of the Euro index since the opening of the market last night was very volatile in the Asian session.
- Global instability, especially in the Middle East, caused the yen index to rise to 794.1 this morning.
Graphical analysis of the Euro index
The movement of the Euro Index since the market opening last night was very volatile in the Asian session. We first saw a pullback to the support at 1039.0. After that, the index started to strengthen in the European session, which started the recovery to the levels of 1047.0. We crossed the 200 EMA at 1044.5 and now we have its support. We expect today's bullish consolidation to continue and the Euro Index to rise to new higher levels.
The higher potential targets are the levels of 1048.0 and 1049.0. For a bearish option, we must first stop further growth and start a bearish consolidation. A pullback below the EMA 200 is a real indicator that we will see a continuation on the bearish side. The lower potential targets are the levels of 1043.0 and 1042.0. An additional support for the euro index is the EMA 50 moving average in the area of 1042.0.
Graphical analysis of the yen index
Global instability, especially in the Middle East, caused the yen index to rise as high as 794.1 this morning. The index paused at the beginning of the EU session and we saw a pullback to the 785.0 level. The previous bullish momentum has faded considerably and the yen is now under pressure to start a pullback. The next important level is 755.0 because if we break below it, we will form a new low and therefore confirm that the index is having trouble staying on the bullish side.
Possible lower targets are the levels of 770.0 and 765.0. For a bullish option, we need to break above the level of 790.0 again. Thus, the yen index would return to an uptrend and would be at the level of the previous high. With the previous momentum, we will form a new one and confirm the continuation of the bullish side. Possible upper targets are the levels of 795.0 and 800.0.
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