Daily Forex Analysis - 08 March 2021

Last Friday, USD strengthened against most major currencies except CAD.

The U.S. non-farm payrolls released last Friday indicated a higher than forecasted increase in the number of jobs in February. Unemployment rate declined slightly while average hourly earnings rose slightly.

- Average Hourly Earnings m/m (Actual: 0.2%, Forecast: 0.2%, Previous: 0.1% revised from 0.2%)

- Non-Farm Employment Change (Actual: 379K, Forecast: 185K, Previous: 166K revised from 49K)

- Unemployment Rate (Actual: 6.2%, Forecast: 6.3%, Previous: 6.3%)

Over the weekend, the U.S. Senate passed the $1.9 trillion COVID-19 relief package. The package is now expected to be approved in the next few days.

Also, the U.S. and the EU agreed to put a pause to the tariffs being imposed over the aircraft subsidies dispute. Both countries also agreed that solutions to this dispute will have to take into consideration competition from China.

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced off the support zone of 0.71000.

Yesterday, Aucklands COVID-19 pandemic alert level had moved to level 2 while the rest of New Zealand had moved to level 1.

The New Zealand preliminary ANZ business confidence data (Forecast: NA, Previous: 7.0 revised from 11.8) will be released tomorrow at 0800 (SGT).

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.

Overall, AUD/USD is ranging across. Recently, AUD/USD broke below the key level of 0.77 and bounced off the support zone of 0.76000.

The Australian NAB business confidence data (Forecast: NA, Previous: 10) will be released tomorrow at 0830 (SGT).

Currently, AUD/USD is testing to break above 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 fails to break above the key level of 0.77.

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke the resistance zone of 107.900.

Last Friday, Japanese Prime Minister Suga announced the extension of Tokyo virus emergency by two weeks.

The Japanese final GDP q/q data (Forecast: TBA, Previous: 3.0%) will be released tomorrow at 0750 (SGT).

USD/JPYs next support zone is at 107.900 and the next resistance zone is at 109.000.

Look for buying opportunities of USD/JPY.

Overall, EUR/USD is ranging across. Recently, EUR/USD broke the support zone of 1.19700.

Over the weekend, the U.S. and the EU agreed to put a pause to the tariffs being imposed over the aircraft subsidies dispute. Both countries also agreed that solutions to this dispute will have to take into consideration competition from China. As a result, EUR/USD gapped upwards when market opens earlier today.

Currently, EUR/USD is testing to break below the key level of 1.19. Its next support zone is at 1.17900 and the next resistance zone is at 1.19700.

Look for selling opportunities of EUR/USD if it breaks below the key level of 1.19.

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced off the support zone of 1.37800.

Bank of England Governor Andrew Bailey will be speaking about the economic outlook later at 1800 (SGT).

During this time, there may be volatility in GBP.

Currently, GBP/USD is moving towards the support zone of 1.37800 and the next resistance zone is at 1.40000.

Look for short-term selling opportunities of GBP/USD if it breaks the support zone of 1.37800.

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced down from the key level of 1.27.

The Ivey PMI data (Actual: 60.0, Forecast: 49.2, Previous: 48.4) released last Friday indicated a recovery in business activities from the contractionary level into the expansionary level.

Currently, USD/CAD is bouncing off the support zone of 1.26100 and the next resistance zone is at 1.28500.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.26100.

Overall, GBP/JPY is trending upwards.

Last Friday, Japanese Prime Minister Suga announced the extension of Tokyo virus emergency by two weeks.

Bank of England Governor Andrew Bailey will be speaking about the economic outlook later at 1800 (SGT).

During this time, there may be volatility in GBP.

The Japanese final GDP q/q data (Forecast: TBA, Previous: 3.0%) will be released tomorrow at 0750 (SGT).

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.

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY has been testing to break the resistance zone of 129.500 but to no avail.

Last Friday, Japanese Prime Minister Suga announced the extension of Tokyo virus emergency by two weeks.

Over the weekend, the U.S. and the EU agreed to put a pause to the tariffs being imposed over the aircraft subsidies dispute. Both countries also agreed that solutions to this dispute will have to take into consideration competition from China. As a result, EUR/USD gapped upwards when market opens earlier today.

The Japanese final GDP q/q data (Forecast: TBA, Previous: 3.0%) will be released tomorrow at 0750 (SGT).

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.