The Euro index falls under pressure to a new multi-day low

August 20, 2024

The Euro index falls under pressure to a new multi-day low

  • At the beginning of this week, we are looking at the withdrawal of the Euro index to a new low
  • In the first part of this morning’s Asian trading session, the yen index showed a strong bullish trend, rising to 762.3

Euro index chart analysis

At the beginning of this week, we are looking at the withdrawal of the Euro index to a new low. During this morning’s Asian session, we saw a drop to 1048.0 levels. After that, the index stopped there and continued to move in the 1048.0-1049.0 range. A step below us is the EMA 200 moving average, and it will be interesting to see how the index will behave if it falls to the moving average line. Depending on the bearish momentum, the pullback will also depend.

Potential lower targets are the 1047.0 and 1046.0 levels. For a bullish option, we need a positive consolidation of the euro index up to 1050.0. As a result, we move to the daily open price and move above the EMA 50 moving average. If we manage to stabilize at that level, we could hope for a continuation on the bullish side. Potential higher targets are the 1051.0 and 1052.0 levels.

 

Yen index chart analysis

In the first part of this morning’s Asian trading session, the yen index showed a strong bullish trend, rising to 762.3. After that, it started a retreat and fell to 755.5 in the EU session. At 754.2, we will encounter the EMA 200 moving average, and the yen could look for new support there. If it has no strength, we will see a drop below and the formation of a new low. Potential lower targets are the 752.0 and 750.0 levels.

For a bullish option, we need to stop the current bearish consolidation. Once we succeed, the yen index could initiate a positive consolidation and move back above the 760.0 level. With that step, we strengthen the bullish momentum, and the chances are increasing that we will soon test the previous high. Potential higher targets are the 764.0 and 766.0 levels.

 

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