Euro index and yen index: new lower low for the yen at 711.8
- During this morning’s Asian trading session, the Euro index continued to show signs of weakness.
- In the previous hour, the yen index broke through last week’s low and thus formed a new, but this week’s, level of 711.8.
Euro index chart analysis
During this morning’s Asian trading session, the Euro index continued to show signs of weakness. We saw a pullback below the EMA200 moving average and a drop below the weekly open price. This brings us down to the 1053.5 level, and we form a new daily low there. The index is under the influence of bearish momentum and there is every chance that we will see a further pullback to the bearish side.
Potential lower targets are 1053.0 and 1052.5 levels. We need a positive consolidation and a return above the 1054.5 level for a bullish option. This brings us back above the EMA200 moving average, and we are again on the positive side. After that we can hope for further growth in the recovery on the bullish side. Potential higher targets are 1055.0 and 1055.5 levels.
Yen index chart analysis
In the previous hour, the yen index broke through last week’s low and thus formed a new, but this week’s, level of 711.8. For now, we are holding above and expect a return above the weekly open price at the 712.5 level. If we succeed in this, the index could slowly initiate further recovery by crossing above the EMA50 moving average and 713.2 levels.
By stabilizing above the EMA50, it is much easier to form a new bottom from which we start further growth on the bullish side. Potential higher targets are 714.0 and 714.5 levels. We need a continuation of negative consolidation and a pullback to 711.5 levels for a bearish option. With that step, we will form a new weekly low and confirm the bearish continuation. Potential lower targets are 711.0 and 710.5 levels.
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