Two trades to watch: EUR/USD, FTSE

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

Charts (1)

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.

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 soke of a faster US economic recovery but ruled out inflation fears.

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

There is no Eurozone 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 abpove 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.

Learn more about trading forex



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.

Learn more about trading indices

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.