Looking at the H4 chart, the EURUSD pair reacted to the supply zone related to moving averages. One can see that if the current H4 candle closes around the 1.1900 level, then a bearish engulfing pattern will appear on the chart. Moreover, the pair broke below the lower limit of the recent consolidation range. Nevertheless, the level of 1.1900 still acts as strong support. However, the bearish engulfing pattern may lead to further declines to the 1.1850 level, which is also indicated by the prices of US bonds. Despite weak retail sales data, the dollar appreciates and yields remain flat. Additionally, tomorrow the Fed may potentially disappoint, which should provide support for the dollar and act positively on yields.
A potential bearish engulfing pattern could pull the pair towards local low around 1.1850. Source: xStation5
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