- On Friday we saw the Euro Index fall to 1041.5, followed by a slight recovery and the market closed at 1042.8.
- The yen index rose to a new March high this morning at 760.1.
Analysis of the Euro index chart
On Friday we saw the Euro Index fall to 1041.5, followed by a slight recovery and the market closed at 1042.8. During the Asian trading session this morning, the index's value failed to break through this level and begin to recover. Now, before the start of the American session, we are once again close to that area, and we have an opportunity for a new attempt. We need a stronger push that will push us above the 1043.0 level.
This would allow us to break through the resistance area and increase the chances of the euro index recovering. Possible higher targets are 1044.0 and 1045.0 levels. If we fail to move above, the indicator will retreat and fall to a new daily level. This increases the downward momentum, and we expect it to continue and descend to a new lower support level. Possible lower targets are 1041.0 and 1040.0 levels.
Yen indicator chart analysis
The yen index rose to a new March high this morning at 760.1. During the Asian session, Japanese GDP data was published. The data was positive and supportive of the yen's current trend. The index is completely stable above the 757.0 level, and we expect further continuation and the formation of a new daily high. Possible higher targets are 761.0 and 762.0 levels.
We need a negative consolidation up to 757.0 for a bearish option on the Yen index. There, we will test the weekly open price. A drop below that pushes the yen lower, increasing downward pressure. Then the indicator will be forced to pull back and look for new support. Possible lower targets are 756.0 and 755.0 levels. The EMA50 in the area around 755.0 could provide us with additional support and stop the decline.
