Main Scenario: As long as EURUSD stays below 1.1733, the main trend will be downwards. Then the pair may down to 1.1657 price level
Target Expectation: 1.1657
Considerations Supporting The Scenario:
The euro traded little changed at $1.17205, largely ignoring developments in German elections on the weekend, with the Social Democrats projected to narrowly defeat the CDU/CSU conservative bloc.
The dollar index, which measures the U.S. currency against six major rivals, hovered in the middle of its range of the past week, trading slightly weaker at 93.240.
U.S. yields climbed to their highest since the start of July in anticipation of tighter U.S. monetary policy after the Federal Reserve announced last week that it may start tapering stimulus as soon as November and flagged interest rate increases may follow sooner than expected.
Alternative Scenario: An alternative expectation may be taken into account in case of a close above 1.1733
Alternative Target Expectation: 1.1785