Daily Forex Analysis - 05 March 2021

USD Overview (05 March 2021)

Yesterday, USD strengthened against all major currencies due to a strong sell-off in the U.S. stock market that led to an increase in demand of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

The U.S. non-farm payrolls will be released later at 2130 (SGT).

- Average Hourly Earnings m/m (Forecast: 0.2%, Previous: 0.2%)

- Non-Farm Employment Change (Forecast: 185K, Previous: 49K)

- Unemployment Rate (Forecast: 6.3%, Previous: 6.3%)

NZD/USD Outlook (05 March 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke below the key level of 0.72 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (05 March 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD broke the support zone of 0.77900 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

Currently, AUD/USD is testing to break below the key level of 0.77. Its next support zone is at 0.76000 and the next resistance zone is at 0.77900.

Look for selling opportunities of AUD/USD if it breaks below the key level of 0.77.

USD/JPY Outlook (05 March 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY trended into the resistance zone of 107.900 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

Currently, USD/JPY is testing the resistance zone of 107.900. Its next support zone is at 106.000 and the next resistance zone is at 107.900.

Look for buying opportunities of USD/JPY if it breaks the resistance zone of 107.900.

EUR/USD Outlook (05 March 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD trended into the support zone of 1.19700 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

The eurozone retails sales m/m data released yesterday indicated a strong decline in consumer spending while unemployment rate declined slightly.

- Retail Sales m/m (Actual: -5.9%, Forecast: -1.4%, Previous: 1.8% revised from 2.0%)

- Unemployment Rate (Actual: 8.1%, Forecast: 8.3%, Previous: 8.1% revised from 8.3%)

Currently, EUR/USD is testing the support zone of 1.19700 and the next resistance zone is at 1.21500.

Look for selling opportunities of EUR/USD if it breaks the support zone of 1.19700.

GBP/USD Outlook (05 March 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke below the key level of 1.38 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

The UK construction PMI data (Actual: 53.3, Forecast: 51.1, Previous: 49.2) released yesterday indicated an increase in the pace of expansion in the UK construction sector.

GBP/USDs next support zone is at 1.37800 and the next resistance zone is at 1.40000.

Look for short-term selling opportunities of GBP/USD.

USD/CAD Outlook (05 March 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced off the support zone of 1.26100 due to the strengthening of USD after Federal Reserve Chairman Jerome Powell said in a speech that he expects inflation to rise in the near future but is insufficient to trigger a rate hike from the central bank.

During the OPEC+ meeting yesterday, Saudi Arabia announced to maintain its 1 million barrel-per-day (bpd) voluntary cut in April. Also, OPEC+ has decided not to hike output by 500,00 bpd in April.

The Ivey PMI data (Forecast: 49.2, Previous: 48.4) will be released later at 2300 (SGT).

USD/CADs next support zone is at 1.26100 and the next resistance zone is at 1.28500.

Look for short-term buying opportunities of USD/CAD.

GBP/JPY Outlook (05 March 2021)

Overall, GBP/JPY is trending upwards.

The UK construction PMI data (Actual: 53.3, Forecast: 51.1, Previous: 49.2) released yesterday indicated an increase in the pace of expansion in the UK construction sector.

Currently, GBP/JPY is testing the resistance zone of 149.800 and the next support zone is at 147.800.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 149.800.

EUR/JPY Outlook (05 March 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced off the resistance zone of 129.500.

The eurozone retails sales m/m data released yesterday indicated a strong decline in consumer spending while unemployment rate declined slightly.

- Retail Sales m/m (Actual: -5.9%, Forecast: -1.4%, Previous: 1.8% revised from 2.0%)

- Unemployment Rate (Actual: 8.1%, Forecast: 8.3%, Previous: 8.1% revised from 8.3%)

Currently, EUR/JPY is testing to break below the key level of 129. Its next support zone is at 127.150 and the next resistance zone is at 129.500.

Look for short-term selling opportunities of EUR/JPY if it breaks below the key level of 129.