Daily Forex Analysis - 19 March 2021

USD Overview (19 March 2021)

Yesterday, USD strengthened against all major currencies.

It was reported yesterday that the U.S. 10-year yield hit the highest level since January 2020, rising above 1.7% amid continued fear of rising inflation.

NZD/USD Outlook (19 March 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced off the resistance zone of 0.72850 and broke below the key level of 0.72.

The New Zealand Westpac Consumer Sentiment data (Forecast: NA, Previous: 106.0) will be released next Monday at 0400 (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.

AUD/USD Outlook (19 March 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD broke the support zone of 0.77900.

The Australian retail sales m/m data (Actual: -1.1%, Forecast: 0.6%, Previous: 0.5%) released earlier today indicated a decline in consumer spending in February due to the COVID restrictions imposed in Victoria and parts of Western Australia.

AUD/USDs next support zone is at 0.76000 and the next resistance zone is at 0.77900.

Look for selling opportunities of AUD/USD.

USD/JPY Outlook (19 March 2021)

Overall, USD/JPY is trending upwards.

The BoJ will be announcing their monetary policy decision today at a tentative timing. It is expected that the central bank will be holding its monetary policy unchanged.

A press conference will also be held at a tentative timing after the announcement. During this time, volatility in JPY is expected.

Currently, USD/JPY is testing the resistance zone of 109.000 and the next support zone is at 106.000.

If USD/JPY bounces off the resistance zone of 109.000, look for short-term selling opportunities.

EUR/USD Outlook (19 March 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced off the resistance zone of 1.19700.

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.

If EUR/USD breaks below the key level of 1.19, look for selling opportunities of EUR/USD.

GBP/USD Outlook (19 March 2021)

Overall, GBP/USD is ranging across. Recently GBP/USD bounced off the resistance zone of 1.40000.

During the monetary policy meeting yesterday, the Bank of England (BoE) held its monetary policy unchanged. Although COVID restrictions will be weighing on economic activities for now, the central bank highlighted that the vaccination programme will lead to its recovery, thus projecting economic growth to recover strongly towards pre-COVID levels over 2021.

Currently, GBP/USD is testing to break below the key level of 1.39. Its next support zone is at 1.37800 and the next resistance zone is at 1.40000.

Look for selling opportunities of GBP/USD if it breaks below the key level of 1.39.

USD/CAD Outlook (19 March 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced off the support zone of 1.23800.

The Canadian retail sales m/m data will be released later at 2030 (SGT).

- Core Retail Sales m/m (Forecast: -2.8%, Previous: -4.1%)

- Retail Sales m/m (Forecast: -3.0%, Previous: -3.4%)

Currently, USD/CAD is testing to break above the key level of 1.25. Its next support zone is at 1.23800 and the next resistance zone is at 1.26100.

Look for short-term buying opportunities of USD/CAD if it breaks above the key level of 1.25.

GBP/JPY Outlook (19 March 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 152.600.

During the monetary policy meeting yesterday, the Bank of England (BoE) held its monetary policy unchanged. Although COVID restrictions will be weighing on economic activities for now, the central bank highlighted that the vaccination programme will lead to its recovery, thus projecting economic growth to recover strongly towards pre-COVID levels over 2021.

The BoJ will be announcing their monetary policy decision today at a tentative timing. It is expected that the central bank will be holding its monetary policy unchanged.

A press conference will also be held at a tentative timing after the announcement. During this time, volatility in JPY is expected.

GBP/JPYs next support zone is at 149.800 and the next resistance zone is at 152.600.

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

EUR/JPY Outlook (19 March 2021)

Overall, EUR/JPY is trending upwards.

The BoJ will be announcing their monetary policy decision today at a tentative timing. It is expected that the central bank will be holding its monetary policy unchanged.

A press conference will also be held at a tentative timing after the announcement. During this time, volatility in JPY is expected.

EUR/JPYs next support zone is at 129.500 and the next resistance zone is at 132.800.

Look for buying opportunities of EUR/JPY.