Euro index and yen index: 1045.0 support level for Euro
- The Euro index has been in a bullish consolidation since last Friday.
- The Yen index has been in a bearish consolidation since Monday.
Euro index chart analysis
The Euro index has been in a bullish consolidation since last Friday. Last night, after a week, we returned again above the EMA200 moving average and the 1045.0 level. During the Asian session, we saw a continuation of the recovery to the 1046.8 level. We stop there and slightly pull back in the EU session to the 1045.5 level.
It is important for the euro to maintain above the EMA200 in order to have good support to initiate further positive consolidation. Potential higher targets are 1047.0 and 1048.0 levels. We need a pullback below the EMA200 and 1045.0 levels for a bearish option. This tells us that the Euro index is under pressure and that we are leaning towards the bearish side. Potential lower targets are 1044.0 and 1043.0 levels.
Yen index chart analysis
The yen index has been in a bearish consolidation since Monday. We are currently at the 734.2 level and close to the weekly low of 733.8. We are not able to deal with the EMA50 moving spray and are under constant pressure from it. Based on that, we expect a further pullback and a visit of the yen to lower support levels. Potential lower targets are 733.0 and 732.0 levels.
We need a positive consolidation and a move to 736.0 levels for a bullish option. With that step, we climb above the EMA50 and look for its support. If further bullish consolidation continues, we will continue towards the 737.0 level and the EMA200 moving average. It presents us with even more resistance to our bullish continuation, but a strong impulse above could solve it quickly. Potential higher targets are 738.0 and 739.0 levels. Even there, we are still far from the previous Friday’s high at the 743.5 level.
