The euro index recovers while the yen hits a new high

August 6, 2024

The euro index recovers while the yen hits a new high

  • The Euro index’s movement since the market’s opening last night was very volatile in the Asian session. 
  • Global instability, especially in the Middle East, caused the yen index to jump to 794.1 this morning. 

Euro index chart analysis

The Euro index’s movement since the market’s opening last night was very volatile in the Asian session. We first saw a pullback to support at 1039.0. After that, the index began to strengthen in the EU session, which initiated the recovery to 1047.0 levels. We crossed the 200 EMA at 1044.5 and now have its support. We expect today’s bullish consolidation to continue and the euro index to rise to new higher levels.

Potential higher targets are 1048.0 and 1049.0 levels. For a bearish option, we need first to stop further growth and initiate a bearish consolidation. A pullback below the EMA 200 is a true indicator that we will see a continuation to the bearish side. Potential lower targets are 1043.0 and 1042.0 levels. Additional support for the Euro index is the EMA 50 moving average in the zone of 1042.0.

 

Yen index chart analysis

Global instability, especially in the Middle East, caused the yen index to jump to 794.1 this morning. The index stopped at the beginning of the EU session, and we saw a retreat to the 785.0 level. The previous bullish momentum has waned considerably, and the yen is now under pressure to initiate a pullback. The next important level is 755.0 because if we slide below, we will form a new low and thus confirm that the index is in trouble to stay on the bullish side.

Potential lower targets are 770.0 and 765.0 levels. For a bullish option, we need to move back above the 790.0 level. Thus, the yen index would return to a bullish trend and be within reach of the previous high. With the impulse above, we will form a new one and confirm the continuation to the bullish side. Potential higher targets are 795.0 and 800.0 levels.

 

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