- During the Asian session this morning, the Euro Index showed a bearish trend.
- During the Asian session this morning, the yen index moved in the range of 727.0-730.0.
Graphical analysis of the Euro index
During the Asian session this morning, the Euro index turned bearish. At the beginning of the European session, the Euro was expected to gain strength, but it did not happen. The index's pullback continued to the level of 1046.0. We are close to last week's low and if the current move continues, we could soon reach that level. Possible lower targets are the levels of 1045.0 and 1044.0.
For a bullish option, the index would have to stabilize at the level of 1046.0. After that, we can expect the beginning of a bullish consolidation. Upon breaking through the level of 1047.0, the index would take the first step towards further recovery. Possible higher targets are the levels of 1048.0 and 1049.0. The EMA 200 moving average is one step higher at the level of 1050.0.
Graphical analysis of the yen index
During the Asian session this morning, the yen index moved in the range of 727.0-730.0. The index managed to hold above the weekly opening price with the support of the EMA 50 moving average. Based on those parameters, we expect to see a breakout above the previous range and continue on the bullish side. Possible higher targets are the levels of 732.0 and 734.0.
If the yen index were to retreat below the weekly opening price of 727.0, a bearish option could be on the horizon. This scenario would see the index fall below the EMA 50 moving average, which could increase the pressure on the yen. After forming a new daily low, the index would be forced to continue on the bearish side and look for new support. Possible lower targets are the 724.0 and 722.0 levels. 722.0 is Friday's low and could be a key point for the trend to continue.
!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’);
