- The Euro index came under strong pressure yesterday at the 1050.0 level.
- The yen index fell this morning to a new April low of 735.6.
Analysis of the Euro index chart
The Euro index came under strong pressure yesterday at the 1050.0 level. Staying at the top did not last long; This was followed by a decline to 1047.0 levels. During the Asian trading session, the index managed to stay in that region, and with the beginning of the European Union session, there was a new increase in pressure on the Euro. We then see a breakout to a new weekly low at 1046.0.
Possible lower targets are 1045.0 and 1044.0 levels. We need positive consolidation and a move above 1048.0 for a bullish option. With this, at least for a short time, we are back to the upside, and now we need to maintain our position there. If we succeed, we head further to 1049.0, where the EMA200 is waiting for us.
Yen indicator chart analysis
The yen index fell this morning to a new April low of 735.6. This confirms that the Japanese currency is still under pressure even after the interest rate increase by the Bank of Japan. The decline stopped here and we now see an attempt to bounce back to the 737.0 level. Additional resistance could be the EMA50, and we could easily move higher with new momentum.
Possible higher targets are 738.0 and 739.0 levels. We need a negative consolidation and return to the area under the 736.0 level for a bearish option. This puts pressure on the lows this morning again. Strong downward momentum would push the Yen index to a new low thus extending the bearish option. Possible lower targets are 735.0 and 734.0 levels.
