• The Euro index is in a steady bullish consolidation this week. 
• Last night, the yen index retreated to a new July low at 691.1 levels. 

The Euro index is in a steady bullish consolidation this week. Yesterday, we saw the formation of a weekly high at the 1050.6 level. Today, we are moving in the 1049.0-1050.5 range supported by the EMA50 moving average. Everything indicates that the index is going up to a new high. Potential higher targets are the 1051.0 and 1052.0 levels.

We need negative consolidation and descent to the 1048.0 level for the bearish option. Thus, we move below the EMA50 moving average, which will negatively affect the movement of the Euro index. With increased bearish momentum, looking for support at lower levels is the only thing left. Potential lower targets are the 1047.0 and 1046.0 levels. Additional support will be found in the EMA200 moving average in the 1045.5 zone.

Yen index chart analysis

Last night, the yen index retreated to a new July low at 691.1 levels. During the Asian session, the index stabilized and initiated a bullish consolidation. It is now at 693.2 and breaking above the EMA50 moving average. This could strengthen the bullish option and solidify the beginning of a longer-term recovery.

Potential higher targets are 694.0 and 695.0 levels. The weekly open price also seems very far away at the 698.0 level. Additional resistance in that zone is the EMA200 moving average. The yen index must first pull back below the EMA50 moving average for a bearish option. This is the first sign that the yen is losing strength and turning to the bearish side. Going down to the 692.2 level, we will test the daily open price and yesterday’s low. Potential lower targets are 691.0 and 690.0 levels.