Expected scenarios for the Euro Index in the medium term

The Euro Index is moving in a general downtrend, having broken through key support levels on the daily timeframe. It is currently moving sideways on the 4-hour timeframe, which represents a potential distribution phase. If successful, this could push the index further down.

So far, there are no strong support levels that could reverse the index's decline. However, an upward scenario is still possible.

Expected scenarios

The first scenario, and the most likely at the moment, is a decline in the index and a continuation of the downtrend, especially since the index has established strong new supply levels around 2.4026. This could push the index down to the targets near 2.400 and 2.396.

The second scenario, currently considered weak but still possible, involves a resumption of the Euro Index's upward trend. This is contingent upon breaking through both the supply and resistance levels, as well as the downtrend line shown on the chart.

If the specified levels are broken and the price closes above the trend line on a 4-hour candle, we can expect to see an upward movement in the index and a strengthening of the Euro. The target for this upward move would be the next supply level, near 2.4118.