The Euro index is losing momentum and retreating today
- During this morning’s Asian trading session, the Euro index had resistance at the 1046.0 level.
- On Wednesday, the yen index retreated to the 756.4 level, forming a weekly low.
Euro index chart analysis
During this morning’s Asian trading session, the Euro index had resistance at the 1046.0 level. The inability to move above only increased the pressure on the Euro, which we have now seen with a bearish impulse to 1044.0. The index has fallen below the EMA 200 moving average, and the chances are increasing that we will see a further pullback and a search for a new support level. The next important level is 1043.0 when we will test the weekly open price.
Potential lower targets are 1042.0 and 1041.0 levels. For a bullish option, we need another positive consolidation and a return above the EMA 200 moving average. After that, we will have to retest today’s resistance at 1046.0. If we manage to move above, we could climb to 1047.0 for the weekly high. Potential higher targets are 1048.0 and 1049.0 levels.
Yen index chart analysis
On Wednesday, the yen index retreated to the 756.4 level, forming a weekly low. After that, we saw a slight bullish consolidation up to the 770.0 level. During this morning’s Asian session, the movement took place in the 760.0-767.0 range. Now, we see increasing pressure on the yen index, which is falling below 761.5. This move could increase pressure on the index to make a deeper pullback.
Potential lower targets are 755.0 and 750.0 levels. The EMA 200 moving average at the 755.0 level provides additional support for the yen index. For a bullish option, we need a positive consolidation and a rebound above the 765.5 level. There, we get new support at the EMA 50 moving average. After that, we can expect a further recovery of the index and a shift to the bullish side. Potential higher targets are 775.0 and 780.0 levels.
