The Euro index continues to fall, Yen looks for support

Euro index chart analysis

Today, the euro index retreated to its lowest value this week, 1036.8. After that, we managed to stop further pullback and recover slightly to 1038.6. This could be the beginning of a new bullish consolidation and index recovery. By returning above the 1040.0 level, we would have taken a significant step. With stabilization at that level, the euro index would have a good bottom for a more concrete continuation on the bullish side.

Potential higher targets are 1042.0 and 1044.0 levels. For a bearish option, we need negative consolidation and a return to this morning’s low. We thereby put pressure on that level, which could create a new bearish impulse and push the euro index to a new weekly low. Potential lower targets are 1036.0 and 1034.0 levels.

Yen index chart analysis

During this morning’s Asian trading session, the yen index rose to 753.8 levels, forming a new weekly high. After that, the bullish momentum declined, and the index retreated to 743.0 levels. Here, we test the previous low and the EMA 50 moving average. If the yen finds new support here, it could revert to the bullish side. Potential higher targets are 756.0 and 758.0 levels.

For a bearish option, we need a negative consolidation and pullback below the EMA 50 moving average. This is a sign that the yen is in trouble, and we will be looking for a pullback and new support. Potential lower targets are 740.0 and 738.0 levels. The EMA 200 moving average is moving down in the zone of 728.0 levels. On Tuesday, the Bank of Japan increased the interest rate from 0.10% to 0.25%, which positively affected the yen, and based on this, we expect a strong yen in the coming days.

The post The Euro index continues to fall, Yen looks for support appeared first on FinanceBrokerage.