Euro index and yen: The euro is losing its bullish momentum
- The Euro index has been consolidating sideways all this week
- This week, the yen index moved in the 750.0-760.0 range
Euro index chart analysis
The Euro index has been consolidating sideways all this week. This morning, we had one impulse to the 1052.4 level, but we quickly returned to the previous range of movement. The index value is now 1051.0, and we are slowly turning to the bearish side. It is possible that we will see a pullback to the 1049.00 level and test the EMA 200 moving average there. This morning we already tested that level once and got support from the EMA 200. This time, we could see a break below and a drop to a new daily low.
Potential lower targets are 1048.0 and 1047.0 levels. For a bullish option, we need a new retracement above the 1052.0 level. Thus, the euro index would create a path towards forming a new weekly high. After that, the initiation of a bullish consolidation and a continuation of the bullish side remains to be seen. Potential higher targets are the 1053.0 and 1054.0 levels.
Yen index chart analysis
This week, the yen index moved in the 750.0-760.0 range. During this morning’s Asian trading session, the index encountered resistance at the 757.0 level. After that, a bearish consolidation was initiated, a pullback below 755.0 and the EMA 200 moving average. This only increased the pressure on the yen to start a further retreat all the way to the 752.0 level. We are just short of breaking down to 750.0 and testing this week’s support zone.
Potential lower targets are 748.0 and 746.0 levels. For a bullish option, we need a positive consolidation of the yen index and a return above the EMA 200 moving average. After that, we can expect further recovery and a visit to this week’s resistance zone. Potential higher targets are 758.0 and 760.0 levels.
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