Daily Forex Analysis - 6th May 2021

USD Overview (06 May 2021)

Yesterday, USD weakened against most major currencies except EUR.

The ADP Non-Farm Employment Change data (Actual: 742K, Forecast: 872K, Previous: 565K revised from 517K) released yesterday indicated continued growth in the job market albeit at a lower-than-expected pace.

The ISM Services PMI data (Actual: 62.7, Forecast: 64.2, Previous: 63.7) released yesterday indicated a slight slowdown in the expansion of the services sector in April.

The Unemployment Claims data (Forecast: 540K, Previous: 553K) will be released later at 2030 (SGT).

NZD/USD Outlook (06 May 2021)

Overall, NZD/USD is trending upwards.

The New Zealand Building Consents m/m data (Actual: 17.9%, Forecast: NA, Previous: -19.3%) released earlier today indicated an increase in building approvals in March.

The Preliminary ANZ Business Confidence data (Actual: 7.0, Forecast: NA, Previous: -2.0 revised from -8.4) indicated a recovery in business outlook in May from the previous pessimistic level.

The New Zealand Inflation Expectations q/q data (Forecast: NA, Previous: 1.89%) will be released tomorrow at 1100 (SGT).

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

Look for buying opportunities of NZD/USD.

AUD/USD Outlook (06 May 2021)

Overall, AUD/USD is trending upwards.

The Reserve Bank of Australia (RBA) will be releasing its monetary policy statement tomorrow at 0930 (SGT).

AUD/USDs next support zone is at 0.75500 and the next resistance zone is at 0.78000.

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (06 May 2021)

Overall, USD/JPY is ranging across.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (06 May 2021)

Overall, EUR/USD is trending upwards.

The eurozone Retail Sales m/m data (Forecast: 1.5%, Previous: 3.0%) will be released later at 1700 (SGT).

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

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (06 May 2021)

Overall, GBP/USD is ranging across.

The Bank of England (BoE) will be announcing its monetary policy decision later at 1900 (SGT). It is expected that the central bank will be holding its monetary policy unchanged. With the decline in the number of COVID-19 cases and the resumption of economic activities, the central bank may cut back on its quantitative easing and revise its economic projections upwards.

Currently, GBP/USD is testing to break above the key level of 1.39. Its next support zone is at 1.38000 and the next resistance zone is at 1.40000.

If the BoE express signs of hawkishness such as reducing or planning to reduce quantitative easing and upgrading its economic projections, look for buying opportunities of GBP/USD if it breaks above the key level of 1.39.

USD/CAD Outlook (06 May 2021)

Overall, USD/CAD is trending downwards.

Currently, USD/CAD is testing the support zone of 1.22400 and the next resistance zone is at 1.23800.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.22400.

GBP/JPY Outlook (06 May 2021)

Overall, GBP/JPY is ranging across.

The Bank of England (BoE) will be announcing its monetary policy decision later at 1900 (SGT). It is expected that the central bank will be holding its monetary policy unchanged. With the decline in the number of COVID-19 cases and the resumption of economic activities, the central bank may cut back on its quantitative easing and revise its economic projections upwards.

Currently, GBP/JPY is testing to break above the key level of 152. Its next support zone is at 151.000 and the next resistance zone is at 153.000.

If the BoE express signs of hawkishness such as reducing or planning to reduce quantitative easing and upgrading its economic projections, look for buying opportunities of GBP/JPY if it breaks above the key level of 152.

EUR/JPY Outlook (06 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced up from the support zone of 130.800.

The eurozone Retail Sales m/m data (Forecast: 1.5%, Previous: 3.0%) will be released later at 1700 (SGT).

EUR/JPYs next support zone is at 130.800 and the next resistance zone is at 132.800.

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