Potential Rebound Zones for the Euro in the Long Term

Since the start of the Iran-US war, markets have experienced sharp and significant volatility, and the euro has been one of the assets most affected.

The euro's current decline is a clear consequence of the ongoing conflict, which has pushed the currency down to levels as low as 2.3827, and it may fall further in the coming period.

Currently, from a technical perspective, the euro index is approaching significant and potentially strong rebound zones, with the currency showing signs of oversold conditions and weakness in recent days. These factors could facilitate a correction if the currency does indeed rebound from the identified demand zones on the chart.

Reversal Zones

The demand zones, which represent very strong reversal areas, are located near the 2.3822 level. If any reversal signal appears on the 4-hour or even the daily timeframe, we expect to see the currency rise to the 2.3900 level as an initial target for the index. If it closes above this level with clear upward momentum, the correction may continue upwards towards the broken support zones, which are located near the 2.4000 level, as shown on the chart.

Please pay close attention, as this scenario is contingent on the emergence of signs of a reversal. However, if the current levels fail to support the price again and these levels are broken and closed below with a strong bearish candle, we may see the currency continue its decline to the next levels.

We must be aware that if the current situation in the Middle East worsens, this will negatively impact the currency significantly. Therefore, it is important to closely monitor the situation during this period.