- Today we are seeing increased volatility in the Euro index, and the reason for this is the Eurozone meeting.
- During the Asian session this morning, the yen index found new support at the 106.0 level.
Graphical analysis of the Euro index
Today, we are observing the increase in volatility of the Euro index, and the reason for this is the Eurozone meeting. During the Asian session this morning, we saw a pullback to the levels of 1051.7. The index gets that support from the EMA 200 moving average. After a short stabilization, we see the beginning of bullish consolidation and growth to the levels of 1053.5. We expect the Euro to have enough strength to stabilize above the weekly opening price. If it succeeds, we will move to the bullish side.
Possible upper targets are the levels of 1054.0 and 1054.5. For a bearish option, we need a pullback of the Euro index below 1052.0 and the EMA 200 moving average. This time, a new push in that zone could generate a push below and form a new weekly low. This confirms the continuation of the bearish side. Possible lower targets are the levels of 1051.0 and 1050.5.
Graphical analysis of the yen index
During the Asian session this morning, the yen index found new support at the level of 106.0. After that, we saw bullish consolidation and the formation of a weekly high at the level of 712.3. For now, we have resistance there, and the index has retreated to the support level of 709.0. Here, the value of the yen index is trying to hold on, after which we could start a new bullish consolidation and test this morning's high.
The higher potential targets are the 713.0 and 714.0 levels. For a bearish option, we need a pullback to the 706.0 level. Again, we are testing the weekly opening price in that zone. The momentum below moves us to the downside and will influence us to see a pullback in the yen index. The lower potential targets are the 705.0 and 704.0 levels. Around 703.0, we find the 200 EMA moving average.
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