The euro index is stagnating and is going to a new high

• On Wednesday, the Euro index retreated and was under bearish pressure.
• During this morning’s Asian trading session, the yen index rose to 713.2 levels, forming a new July high.

Euro index chart analysis

On Wednesday, the Euro index retreated and was under bearish pressure. We received support in the zone of 1051.5 levels. We have additional support in the EMA 200 moving average, which does not allow us to start pulling back below it. The index recovered slightly to 1052.5 levels, and we need one more step to return above the weekly open price to the positive side. If we succeed in this, the index’s value will be in a better position to start a bullish consolidation.

Potential higher targets are the 1053.0 and 1053.5 levels. For a bearish option, the euro index must visit the EMA 200 and 1051.5 levels again. A drop below the moving average would increase the bearish pressure on the index to continue its decline. Potential lower targets are 1051.0 and 1050.5 levels.

Yen index chart analysis

During this morning’s Asian trading session, the yen index rose to 713.2 levels, forming a new July high. After that, we see a stop at that level and a pullback to the 708.5 level. We are still in a bearish consolidation, which could create a new lower low. Potential lower targets are 706.0 and 704.0 levels. Additional support in the 706.0 zone is the EMA 50 moving average.

For a bullish option, we need a continuation of positive consolidation and a return above the 710.0 level. Then, the yen index needs to stabilize there before continuing further recovery. The next target is this morning’s high; a new visit to that zone could bring an impulse to a higher high. Potential higher targets are 712.0 and 714.0 levels.

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