EUR/USD drops towards 1.1900 as bonds bears dominate ahead of US Pres. Biden’s speech

EUR/USD refreshes intraday lows, extends Friday’s pullback moves.
Yellen tried to placate bears but failed amid hopes of further stimulus, vaccine news.
ECB’s Kazaks teases scaling back of stimulus, Fed meeting will be the key.

Anil Panchal FXStreet

EUR/USD takes offers around 1.1930, down 0.25% intraday, while heading into Monday’s European session. In doing so, the currency major drops for the second consecutive day as US Treasury yields keep favoring the US dollar ahead of US President Joe Biden’s speech, up for publishing at 17:45 GMT.

US 10-year Treasury yields stay mildly bid around 1.64%, the highest levels since February 2020, marked on Friday, as market players shrug off US Treasury Secretary Janet Yellen’s comments, published during the weekend. In her interview with the ABC, the diplomat accepted near-term risks to the rates but ruled out reflation fears. The ex-Fed Boss also praised US President Biden’s $1.9 trillion stimulus to escalate economic recovery in 2021.

Also exerting downside pressure on the quote could be comments from the ECB Governing Council Member, also Latvian central bank Governor, Kazaks who said, "If the economy performs better, it could be possible to provide less support". It’s worth mentioning that Netherlands’ stipulation on the AstraZeneca vaccine until March 29 and political plays in Germany also weigh on the EUR/USD prices.

Against this backdrop, stock futures in the US and Brussels pare early Asian gains whereas the US dollar index (DXY) gains 0.22% on a day while recently picking up bids near 91.80.

Looking forward, US President Joe Biden’s speech will be the key but all eyes will be on this week’s Fed meeting.

Also read: Will the Fed calm us treasury market volatility?

Technical analysis

EUR/USD bears eye re-test of 200-day EMA level, currently around 1.1835 amid last week’s failures to cross 100-day EMA, at 1.2006 now.

Additional important levels

Overview
Today last price	1.1934
Today Daily Change	-26 pips
Today Daily Change %	-0.22%
Today daily open	1.196

Trends
Daily SMA20	1.2045
Daily SMA50	1.21
Daily SMA100	1.2044
Daily SMA200	1.1839

Levels
Previous Daily High	1.199
Previous Daily Low	1.191
Previous Weekly High	1.199
Previous Weekly Low	1.1836
Previous Monthly High	1.2243
Previous Monthly Low	1.1952
Daily Fibonacci 38.2%	1.1941
Daily Fibonacci 61.8%	1.1959
Daily Pivot Point S1	1.1917
Daily Pivot Point S2	1.1874
Daily Pivot Point S3	1.1837
Daily Pivot Point R1	1.1997
Daily Pivot Point R2	1.2033
Daily Pivot Point R3	1.2077

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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