EUR/USD heads towards 1.19 on higher yields and ahead of Biden's speech. FTSE's recovery stalls at 6800.

EUR/USD heads towards 1.1900

The US Dollar is supported by rising bond yields a ahead of President Joe Biden’s speech at 17:45 GMT (UUP).

US 10 year yields at 1.64% a level last seen in February 2020 as investors looked past US Treasury Secretary Janet Yellen’s comments where she spoke of a faster US economic recovery but ruled out inflation fears.

The suspension of the AstraZeneca (AZN) vaccine in a growing number of EU countries and political plays in Germany are dragging on demand for the Euro (FXE).

There is no Eurozone (EZU) data but a Euro group meeting later today will see ECB President Christine Lagarde and other ECB board members participate.

Where next for EUR/USD share price?

EUR/USD is extending Friday’s declines and trades around session lows heading towards the European open.

The pair trades bellow its 20 & 100 sma indicating further declines. The upward sloping 200sma offers support around 1.1840 which is also last week’s low ahead of 1.1830 low 23 Nov ’20.

On the flip side, any recovery must break above resistance at 1.1950 support turned resistance ahead of 1.2030 the 20 sma ahead of 1.21 round number, 50 sma and high 3 March.

FTSE stalls at 6800

The FTSE is pointing to a mildly higher start ahead of this week’s central bank deluge.

Cautious optimism surrounding global economic recovery offering support to European shares across the board.

However, mixed activity data from China is raising concerns over an uneven recovery in the world’s second largest economy.

Where next for the FTSE ?

The FTSE trades above its ascending trendline from the start of the month. It also trades above its 20 & 50 sma on the 4 hour chart pointing to a bullish trend. The RSI is still in bearish territory although it is pointing sharply lower.

6800/10 is proving to be a tough nut to crack. The bulls failed to move beyond horizontal resistance at this level, a level which has capped gains several times across 2021 so far. A break above 6800/10 could open the door to 6910 the high 8 Jan before taking on resistance at 6960 the yearly high.

Rather than break above 6800 the price has rebounded lower. Support can be seen at 6737 the 20 sma  on the 4 hour chart and also the ascending trend line support. A break below here opens the door to 6700 the 50 sma and negate the current uptrend.