The Euro index rises to 1051.7; yen continues to stabilize

• On Monday, the Euro index formed a new July high at 1051.7. 
• The yen index is in the support zone for the fourth day in a row.

Euro index chart analysis

On Monday, the Euro index formed a new July high at 1051.7. During this morning’s Asian session, the index was in retreat, so in the EU session, we could see the start of a bullish impulse. We have support from the EMA 50 moving average and hope for further bullish continuation. Potential higher targets are the 1052.0 and 1053.0 levels.

We need a negative consolidation and pullback to this morning’s support at the 1049.0 level for a bearish option. Thus, we move below the EMA 50 moving average, which increases the pressure on the Euro index. In the future, the index should continue to fall and search for a new support level. Potential lower targets are 1048.0 and 1047.0 levels. The EMA 200 moving average provides additional support for the Euro index at 1047.0.

 

Yen index chart analysis

The yen index is in the support zone for the fourth day in a row. On Wednesday, we saw the formation of a new low at the 691.1 level. During this morning’s Asian session, we first saw a rise to 695.2 levels. After the formation of that high, the index again turned to the bearish side. This led to a drop below the EMA 50 moving average and the weekly open price.

The picture is now bearish again, and there is a high chance that we will see the test of last week’s low and then the formation of a new one. Potential lower targets are 690.0 and 689.0 levels. The yen index needs to initiate a new bullish consolidation for a bullish option. By returning above the EMA 50, we get a new opportunity to start a recovery. We will thus test today’s high and hope for the formation of a new one.

 

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