- During the Asian session this morning, the Euro Index started a strong bullish consolidation.
- The yen index continues to fall under downward pressure on Thursday.
Graphical analysis of the Euro index
During the Asian session this morning, the Euro Index started a strong bullish consolidation. We started at 1052.5 and reached 1054.8. If there are no signs of a change in trend, we could continue to a new weekly high, a promising outlook that would bring us closer to the highest levels since May. Possible upper targets are the 1055.0 and 1056.0 levels.
For a bearish option, we need a negative consolidation and a drop below the crucial level of 1054.0 to start with. This level is a key indicator of a possible turnaround in the market. With that step, we would start the pullback. After that, the critical level is the daily opening price at the level of 1052.7. Going below that line would wipe out all of today's gain and move to the downside. Possible lower targets are the levels of 1052.0 and 1051.0.
Graphical analysis of the yen index
The yen index continues to fall under bearish pressure on Thursday. During the Asian session this morning, we saw a drop to a new weekly low at the level of 687.8. After that, the index tried to start a recovery, but it has resistance at the level of 689.0. Again, we are under pressure to see a further pullback and form a new lower low.
Possible lower targets are the levels of 687.0 and 686.0. The yen index needs to stabilize above the level of 689.0 for there to be an upside option. After that, we can expect to see the start of a positive consolidation above 690.0 and the EMA 50 moving average. With their support, the index will be better positioned to continue its recovery. Possible upper targets are the levels of 691.0 and 692.0. The EMA 200 moving average is located in the area around 693.0.
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