The month closed with a very aggressive bearish bar, that can drive to increase of euro quotes decline intensity in November. However, the first day of new month resides within the october’s range and that means there is a probability for bulls’ rematch (in case if they manage to close the month with inside bar). An inactivated bearish pattern O&U from the 1.2091 level speaks in favor of such scenario, in particular.
But if sellers get enough energy to break the psychological support 1.1300, tha major can drop for another 300-400 pips in direction 1.0700-1.0800 (watch the red arrow).
Main scenario: Continuation of euro’s decline in direction 1.08.
Alternative scenario: Close of November with bullish inside bar, that will allow the pair to start recover in direction 1.2091 closer to New Year.
Search for signals that confirm any of scenarios on local time-frames.