Euro Index and Yen: The Euro is under pressure at 1043,5
On Friday, we saw the beginning of a bearish consolidation of the Euro index.
The yen index managed to stabilize above the EMA200 moving average in the past few days.
Euro index chart analysis
On Friday, we saw the beginning of a bearish consolidation of the Euro index. Over the past week, we have had constant resistance in the EMA200 moving average. The formation of a lower high at 1052.0 was a sign that the euro lacked strength and that a pullback was to follow. By the end of the day, the index retreated to 1049.0 levels. With the market’s opening this morning, the euro index makes a bearish gap up to 1046.0 and continues to retreat.
We are currently at the 1043.4 level and there are no signs of a stop and go to the bullish side. Potential lower targets are 1043.0 and 1042.0 levels. We need a positive consolidation and a return above the 1045.0 level for a bullish option. There we could get new support from which we would start further recovery. Potential higher targets are 1046.0 and 1047.0 levels.
Yen index chart analysis
The yen index managed to stabilize above the EMA200 moving average in the past few days. During this morning’s Asian session, we get new support at the 714.0 level and from there, we initiate a bullish consolidation and growth to the daily high at the 717.0 level. We now need to hold above the EMA200 to continue the recovery.
Potential higher targets are 718.0 and 719.0 levels. We need a negative consolidation and pullback to the EMA200 and 715.0 levels for a bearish option. We can expect increasing pressure on the yen to continue down to a new low there. Potential lower targets are 714.0 and 713.0 levels. By descending to the 713.0 level, we will form a new lower low compared to the previous Friday.
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