The euro index is losing ground, the yen continues to rise

• Since the beginning of this week, the Euro index has been in a bearish trend
• After last week’s sideways consolidation, this week hints at a bullish move for the yen index

Euro index chart analysis

Since the beginning of this week, the euro index has been in a bearish trend. Last week was marked by lateral consolidation. Today, we see stronger bearish impulses and a break below the EMA 200 moving average and below 1049.0. We are now at 1047.9 in pure bearish momentum and expect to see further decline and a new daily low formation. Potential lower targets are 1047.0 and 1046.0 levels.

In the previous hour, we broke last week’s low, which further increases the pressure on the euro index. For a bullish option, we need a positive consolidation and stabilization first above the 1048.0 level. If we succeed in this, we will continue to the bullish side and return up to the EMA 200 moving average. A move above would be a success for the euro index as it would thus return to the positive side. Potential higher targets are 1050.0 and 1051.0 levels.

Yen index chart analysis

After last week’s sideways consolidation, this week hints at a bullish move for the yen index. At the start of the Asian trading session, we had a bullish gap as the first step of strengthening the bullish option. Since then, the index has been moving in the 760.0-764.0 range. It is still on the positive side but needs a bullish impulse to continue the recovery. Potential higher targets are the 766.0 and 768.0 levels.

For the bearish option, we need the yen index to fall to the daily open price of 758.4. With that step, we will close this morning’s bullish gap, strengthening the bearish momentum to continue the pullback. New support awaits us at the 765.0 level in the EMA 200 moving average. Potential lower targets are the 754.0 and 752.0 levels.