Daily Forex Analysis - 10 November 2020

USD Overview (10 November 2020)

Yesterday, USD strengthened against most major currencies except NZD and CAD.

Pfizer announced yesterday that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

The European Union announced yesterday that they will impose tariffs on $4 billion worth of U.S. goods from today.

U.S. banks will be closed tomorrow in observance of Veterans Day. Expect lower volatility and trading volume during the U.S. market session.

NZD/USD Outlook (10 November 2020)

Overall, NZD/USD is trending upwards. Recently, NZD/USD broke the resistance zone of 0.67900.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

The Reserve Bank of New Zealand (RBNZ) will be announcing their monetary policy decision tomorrow at 0900 (SGT). It is likely that the central bank will be keeping interest rate unchanged at 0.25%. However, the RBNZ may be providing more details on further easing, specifically the Funding for Lending Programme (FLP) mentioned during the previous meeting. The committee members also mentioned that they prefer to launch the FLP before the end of this year. The central bank may also provide more details on their inclination towards the adoption of negative interest rate. In addition, press conference will be held at 1000 (SGT). During this time, volatility is expected of NZD.

NZD/USDs next support zone is at 0.67900 and the next resistance zone is at 0.70000.

With optimism rising from the COVID-19 treatment, look for buying opportunities of NZD/USD.

AUD/USD Outlook (10 November 2020)

Overall, AUD/USD is trending upwards.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

The Australian Westpac Consumer Sentiment data (Forecast: NA, Previous: 11.9%) will be released tomorrow at 0730 (SGT).

AUD/USDs next support zone is at 0.72200 and the next resistance zone is at 0.73900.

With optimism rising from the COVID-19 treatment, look for buying opportunities of AUD/USD.

USD/JPY Outlook (10 November 2020)

Overall, USD/JPY is ranging across. Recently, USD/JPY trended upwards, breaking the resistance zone of 104.200.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

Currently, USD/JPY is testing to break below the key level of 105. Its next support zone is at 104.200 and the next resistance zone is at 105.300.

With optimism rising from the COVID-19 treatment, look for buying opportunities of USD/JPY if it bounces up from the key level of 105.

EUR/USD Outlook (10 November 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD bounced down from the key level of 1.19 and trended lower into the support zone of 1.17900.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

The European Union announced yesterday that they will impose tariffs on $4 billion worth of U.S. goods from today.

The German ZEW Economic Sentiment data (Forecast: 45.0, Previous: 56.1) will be released later at 1800 (SGT).

Currently, EUR/USD is testing the support zone of 1.17900 and the next resistance zone is at 1.19800.

With the uncertainty caused by the newly imposed tariffs, look for short-term buying opportunities of EUR/USD if it bounces off the support zone of 1.17900.

GBP/USD Outlook (10 November 2020)

Overall, GBP/USD is ranging across.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

Also, UK finance minister Rishi Sunak told the UK parliament that progress on Brexit trade talks have been made.

The UK employment data will be released later at 1500 (SGT).

- Average Earnings Index 3m/y (Forecast: 1.0%, Previous: 0.0%)

- Claimant Count Change (Forecast: TBA, Previous: 28.1K)

- Unemployment Rate (Forecast: 4.7%, Previous: 4.5%)

Currently, GBP/USD is moving towards the resistance zone of 1.32200 and the next support zone is at 1.30400.

With optimism rising from the COVID-19 treatment and progress made on Brexit trade deal, look for buying opportunities of GBP/USD if it breaks the resistance zone of 1.32200.

USD/CAD Outlook (10 November 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke the support zone of 1.30300.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

Canadian banks will be closed tomorrow in observance of Remembrance Day.

Currently, USD/CAD is testing the resistance zone of 1.30300 and the next support zone is at 1.28400.

With optimism rising from the COVID-19 treatment, look for selling opportunities of USD/CAD if it bounces off the resistance zone of 1.30300.

GBP/JPY Outlook (10 November 2020)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY broke the resistance zone of 137.500.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

Also, UK finance minister Rishi Sunak told the UK parliament that progress on Brexit trade talks have been made.

The UK employment data will be released later at 1500 (SGT).

- Average Earnings Index 3m/y (Forecast: 1.0%, Previous: 0.0%)

- Claimant Count Change (Forecast: TBA, Previous: 28.1K)

- Unemployment Rate (Forecast: 4.7%, Previous: 4.5%)

GBP/JPYs next support zone is at 137.500 and the next resistance zone is at 140.000.

With optimism rising from the COVID-19 treatment, look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (10 November 2020)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke the resistance zone of 122.600 and bounced off the resistance zone of 124.750.

Yesterday, Pfizer announced that its experimental COVID-19 vaccine was more than 90% effective. As a result, the market went risk-on.

The European Union announced yesterday that they will impose tariffs on $4 billion worth of U.S. goods from today.

The German ZEW Economic Sentiment data (Forecast: 45.0, Previous: 56.1) will be released later at 1800 (SGT).

EUR/JPYs next support zone is at 122.600 and the next resistance zone is at 124.750.

With the uncertainty caused by the newly imposed tariffs, look for short-term selling opportunities of EUR/JPY.