Euro index continues its sideways consolidation on Monday

Euro index chart analysis

During this morning’s Asian trading session, the Euro index successfully gained support at the 1044.0 level. After that, we saw a bullish consolidation and a rise above the EMA 200 moving average. A daily high was formed at 1045.7, and we expect to see further progress to higher levels. Potential higher targets are 1046.0 and 1047.0 levels. Last week’s high was at 1047.2; just above it, we are going to the new August high.

For a bearish option, we need a negative consolidation and a pullback below the 1044.0 level. That brings us back below the EMA 200 and the weekly open price. With these steps, we are moving to the bearish side and will be forced to look for a new support level. Potential lower targets are 1042.0 and 1041.0 levels.

Yen index chart analysis

This morning, the yen index continued its retreat from last week, reaching a low of 756.6. We will now try to test the EMA 200 and gain support. If the bearish momentum strengthens, a further pullback and transition to a new low will follow. Potential lower targets are the 755.0 and 754.0 levels.

For a bullish option, we need a positive consolidation that would move us away from this support zone. By returning to the 760.0 level, the yen index will encounter the EMA 50 moving average. With one more move, we climb up to the 762.0 weekly open price. There, we will test the weekly open price and hope to move to the positive side. If we succeed in this, the yen could start a longer-term recovery to higher levels. Potential higher targets are 763.0 and 764.0 levels.

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