- On Monday, the euro index hit a new July high of 1,051.7.
- The yen index is in the support zone for the fourth consecutive day.
Graphical analysis of the Euro index
On Monday, the Euro index reached a new July high at 1051.7. During the Asian session this morning, the index was in a pullback, so in the EU session we could see the beginning of a bullish momentum. We have support at the EMA 50 moving average and we expect the bullish momentum to continue. Possible higher targets are the levels of 1052.0 and 1053.0.
We need a negative consolidation and a pullback to this morning's support at the level of 1049.0 for a bearish option. Thus, we move below the EMA 50 moving average, which increases the pressure on the euro index. Going forward, the index should continue to fall and look for a new support level. Possible lower targets are the levels of 1048.0 and 1047.0. The EMA 200 moving average provides additional support for the euro index at 1047.0.
Graphical analysis of the yen index
The yen index is in the support zone for the fourth consecutive day. On Wednesday, we saw the formation of a new low at the level of 691.1. During the Asian session this morning, we first saw a rise to levels of 695.2. After the formation of that high, the index turned to the bearish side again. This led to a drop below the EMA 50 moving average and the weekly opening price.
The picture is now bearish again and there is a high probability that we will see the test of last week's low and then the formation of a new one. Possible lower targets are the levels of 690.0 and 689.0. The yen index needs to start a new bullish consolidation for a bullish option. Upon returning above the EMA 50, we get a new opportunity to start a recovery. Therefore, we will test today's high and wait for the formation of a new one.
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