- The Euro index is in a constant bullish consolidation this week.
- The yen index fell to a new July low of 691.1 overnight.
Graphical analysis of the Euro index
The Euro index is in a steady bullish consolidation this week. Yesterday, we saw the formation of a weekly high at the level of 1050.6. Today, we are trading in the range of 1049.0-1050.5, supported by the EMA50 moving average. All indications are that the index is moving up towards a new high. Possible higher targets are the levels of 1051.0 and 1052.0.
We need a negative consolidation and a drop to the level of 1048.0 for the bearish option. Thus, we move below the EMA50 moving average, which will negatively affect the movement of the euro index. With further bearish momentum, the only thing left is to look for support at lower levels. Possible lower targets are the levels of 1047.0 and 1046.0. Additional support will be found at the EMA200 moving average in the area of 1045.5.
Graphical analysis of the yen index
Last night, the yen index retreated to a new July low at 691.1. During the Asian session, the index stabilized and started a bullish consolidation. It is now at 693.2 and is breaking above the EMA50 moving average. This could strengthen the bullish option and solidify the beginning of a long-term recovery.
The higher potential targets are the 694.0 and 695.0 levels. The weekly opening price also seems very far away at the 698.0 level. Another resistance in that zone is the EMA200 moving average. The yen index must first move back below the EMA50 moving average for a bearish option. This is the first sign that the yen is losing strength and turning to the bearish side. On moving down to the 692.2 level, we will test the daily opening price and yesterday’s low. The lower potential targets are the 691.0 and 690.0 levels.
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