Daily Forex Analysis - 25 March 2021

USD Overview (25 March 2021)

Yesterday, USD strengthened against most major currencies except CAD.

The flash PMI data released yesterday showed that business activities in March continue to expand at a similar rate as February.

- Flash Manufacturing PMI (Actual: 59.0, Forecast: 59.6, Previous: 58.6 revised from 58.5)

- Flash Services PMI (Actual: 60.0, Forecast: 60.1, Previous: 59.8 revised from 58.9)

During his testification yesterday, Federal Reserve Jerome Powell said in response to the recent rise in U.S. inflation that persisting high inflation should not be expected but if it happens, the central bank will have the necessary tools to tone it down to their 2% target.

The U.S. final GDP q/q data (Forecast: 4.1%, Previous: 4.1%) will be released later at 2030 (SGT).

NZD/USD Outlook (25 March 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USDs downtrend has slowed down.

NZD/USDs next support zone is at 0.67900 and the next resistance zone is at 0.71000.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (25 March 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USDs downtrend has stagnated.

Currently, AUD/USD is testing the support zone of 0.76000 and the next resistance zone is at 0.78000.

Look for selling opportunities of AUD/USD if it breaks the support zone of 0.76000.

USD/JPY Outlook (25 March 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY trended into the resistance zone of 109.000.

Bank of Japan Governor Kuroda will be speaking today at a tentative timing.

During his speech, there may be volatility in JPY.

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

Look for short-term selling opportunities of USD/JPY if it rejects the resistance zone of 109.000.

EUR/USD Outlook (25 March 2021)

Overall, EUR/USD is trending downwards.

The French flash PMI data released yesterday indicated that in March, theres an increase in the pace of expansion of in the manufacturing sector while the services sector continues to be in contraction albeit at a slower pace.

- French Flash Service PMI (Actual: 47.8, Forecast: 45.5, Previous: 45.6 revised from 43.6)

- French Flash Manufacturing PMI (Actual: 58.8, Forecast: 56.4, Previous: 56.1 revised from 55.0)

The German Flash PMI data released yesterday indicated a strong increase in the pace of expansion of business activities in March as lockdown measures were partially eased. The services sector rebounded from contraction into a slight expansionary level.

- German Flash Services PMI (Forecast: 50.8, Previous: 45.7 revised from 45.9)

- German Flash Manufacturing PMI (Actual: 66.6, Forecast: 60.4, Previous: 60.7 revised from 60.6)

The eurozone flash PMI data released yesterday indicated a strong increase in the pace of expansion of the manufacturing sector. The services sector remains in contraction but has slowed down.

- Flash Manufacturing PMI (Actual: 62.4, Forecast: 57.5, Previous: 57.9 revised from 57.7)

- Flash Services PMI (Forecast: 48.8, Previous: 45.7 revised from 44.7)

European Central Bank President Lagarde will be speaking later at 1730 (SGT).

During this time, there may be volatility in EUR.

Currently, EUR/USD is bouncing off the support zone of 1.17900 and the next resistance zone is at 1.19700.

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

GBP/USD Outlook (25 March 2021)

Overall, GBP/USD is trending downwards.

The UK flash PMI data released yesterday indicated a strong increase in business activities.

- Flash Manufacturing PMI (Actual: 57.9, Forecast: 55.0, Previous: 55.1 revised from 54.9)

- Flash Services PMI (Actual: 56.8, Forecast: 51.1, Previous: 49.5 revised from 49.7)

Bank of England Governor Bailey will be speaking later at 1730 (SGT).

During this time, there may be volatility in GBP.

Currently, GBP/USD is testing to break below the key level of 1.37. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for short-term buying opportunities of GBP/USD if it bounces up from the key level of 1.37.

USD/CAD Outlook (25 March 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the resistance zone of 1.26100.

Bank of Canada Governor Macklem will be speaking later at 1730 (SGT).

During this time, there may be volatility in CAD.

USD/CADs next support zone is at 1.23800 and the next resistance zone is at 1.26100.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (25 March 2021)

Overall, GBP/JPY is ranging across.

The UK flash PMI data released yesterday indicated a strong increase in business activities.

- Flash Manufacturing PMI (Actual: 57.9, Forecast: 55.0, Previous: 55.1 revised from 54.9)

- Flash Services PMI (Actual: 56.8, Forecast: 51.1, Previous: 49.5 revised from 49.7)

Bank of Japan Governor Kuroda will be speaking today at a tentative timing.

During his speech, there may be volatility in JPY.

Bank of England Governor Bailey will be speaking later at 1730 (SGT).

During this time, there may be volatility in GBP.

GBP/JPYs next support zone is at 147.800 and the next resistance zone is at 149.800.

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

EUR/JPY Outlook (25 March 2021)

Overall, EUR/JPY is ranging across.

The French flash PMI data released yesterday indicated that in March, theres an increase in the pace of expansion of in the manufacturing sector while the services sector continues to be in contraction albeit at a slower pace.

- French Flash Service PMI (Actual: 47.8, Forecast: 45.5, Previous: 45.6 revised from 43.6)

- French Flash Manufacturing PMI (Actual: 58.8, Forecast: 56.4, Previous: 56.1 revised from 55.0)

The German Flash PMI data released yesterday indicated a strong increase in the pace of expansion of business activities in March as lockdown measures were partially eased. The services sector rebounded from contraction into a slight expansionary level.

- German Flash Services PMI (Forecast: 50.8, Previous: 45.7 revised from 45.9)

- German Flash Manufacturing PMI (Actual: 66.6, Forecast: 60.4, Previous: 60.7 revised from 60.6)

The eurozone flash PMI data released yesterday indicated a strong increase in the pace of expansion of the manufacturing sector. The services sector remains in contraction but has slowed down.

- Flash Manufacturing PMI (Actual: 62.4, Forecast: 57.5, Previous: 57.9 revised from 57.7)

- Flash Services PMI (Forecast: 48.8, Previous: 45.7 revised from 44.7)

European Central Bank President Lagarde will be speaking later at 1730 (SGT).

During this time, there may be volatility in EUR.

Bank of Japan Governor Kuroda will be speaking today at a tentative timing.

During his speech, there may be volatility in JPY.

Currently, EUR/JPY is moving towards the key level of 129. Its next support zone is at 127.150 and the next resistance zone is at 129.500.

Look for buying opportunities of EUR/JPY if it breaks above the key level of 129.