Euro index and yen index: Euro recovers to 1052.0 level

Euro index chart analysis

The value of the euro index dropped to 1048.7 this morning. A new weekly low was formed, after which we saw the initiation of a bullish consolidation up to the 1052.0 level. We’re stopping there for now but staying in that zone. We need a new impulse up to 1052.5 to test the EMA200 moving average. At the beginning of the week, we had resistance at that moving average; this time, we will have another chance to move above.

Potential higher targets are the 1053.0 and 1053.5 levels. We need a negative consolidation and pullback to the 1051.0 level and the EMA50 moving average for a bearish option. By going below, the pressure on the EMA50 increases, and we will have to test the daily open price at the 1050.0 level. Potential lower targets are 1049.5 and 1049.0 levels.

Yen index chart analysis

The yen index rose to 716.2 levels on Thursday. Expectations were that the yen could initiate a more specific recovery that would remain on the bullish side for longer. After that, the index tries to consolidate above 713.5 and the EMA200 moving average. During this morning’s Asian session, we see the initiation of bearish consolidation and a drop below the weekly open price. We did not manage to stop there but continued to pull back to the 710.5 level.

Potential lower targets are 710.0 and 709.5 levels. For a bullish option, we need a new bullish consolidation and a move above the 711.0 level to start. Then, we have to hold on there in order to have a basis for further continuation to the bullish side. Potential higher targets are 711.5 and 712.0 levels.

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