Daily Forex Analysis - 26 February 2021

USD Overview (26 February 2021)

Yesterday, USD strengthened against most major currencies except EUR and CHF after a surge in treasury yields was reported, leading to a strong sell-off in the stock market.

The preliminary GDP q/q data (Actual: 4.1%, Forecast: 4.2%, Previous: 4.0%) released yesterday indicated a slight upward revision of GDP during the fourth quarter of 2020.

Earlier today, it was reported that the U.S. carried out military airstrikes in Syria in response to the recent rocket attacks against U.S. targets in Iraq.

The revised UoM consumer sentiment data (Forecast: 76.5, Previous: 76.2) will be released later at 2300 (SGT).

NZD/USD Outlook (26 February 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD weakened and broke above the 0.74 key level as a result of the surge in treasury yields that led to the strengthening of the USD.

During his speech at the Canterbury Chamber of Commerce earlier today, Reserve Bank of New Zealand (RBNZ) Governor Orr reiterated that the central bank will be holding monetary policy unchanged for an extended period of time and may cut interest rate further into the negative level if necessary.

Currently, NZD/USD is moving towards the key level of 0.74. Its next support zone is at 0.72850 and the next resistance zone is at 0.75300.

Look for short-term selling opportunities of NZD/USD if it bounces down from the key level of 0.74.

AUD/USD Outlook (26 February 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD weakened and bounced down from the key level of 0.80 as a result of the surge in treasury yields that led to the strengthening of the USD.

Currently, AUD/USD is moving towards the key level of 0.79. Its next support zone is at 0.77900 and the next resistance zone is at 0.80800.

Look for short-term selling opportunities of AUD/USD if it bounces down from the key level of 0.79.

USD/JPY Outlook (26 February 2021)

Overall, USD/JPY is trending upwards.

The Japanese retail sales y/y data (Actual: -2.4%, Forecast: -2.6%, Previous: -0.2% revised from -0.3%) released earlier today indicated a further decline in consumer spending.

Currently, USD/JPY is testing the resistance zone of 106.000 and the next support zone is at 104.600.

Look for short-term selling opportunities of USD/JPY if it bounces off the resistance zone of 106.000.

EUR/USD Outlook (26 February 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD broke the resistance zone of 1.21500, after which it weakened as a result of the surge in treasury yields that led to the strengthening of the USD.

The French preliminary CPI m/m and GDP q/q data will be released later at 1545 (SGT).

- French Preliminary CPI m/m (Forecast: -0.3%, Previous: 0.2%)

- French Preliminary GDP q/q (Forecast: -1.3%, Previous: -1.3%)

Currently, EUR/USD is testing the support zone of 1.21500 and the next resistance zone is at 1.23200.

Look for short-term selling opportunities of EUR/USD if it breaks the support zone of 1.21500.

GBP/USD Outlook (26 February 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD weakened and broke below the key level of 1.41 as a result of the surge in treasury yields that led to the strengthening of the USD.

Currently, GBP/USD is testing the support zone of 1.40000 and the next resistance zone is at 1.43500.

Look for short-term selling opportunities of GBP/USD if it breaks the support zone of 1.40000.

USD/CAD Outlook (26 February 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD strengthened into the resistance zone of 1.26100 as a result of the surge in treasury yields that led to the strengthening of the USD.

Currently, USD/CAD is testing the resistance zone of 1.26100 and the next support zone is at 1.23800.

Look for short-term buying opportunities of USD/CAD if it breaks the resistance zone of 1.26100.

GBP/JPY Outlook (26 February 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 149.800.

The Japanese retail sales y/y data (Actual: -2.4%, Forecast: -2.6%, Previous: -0.2% revised from -0.3%) released earlier today indicated a further decline in consumer spending.

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

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

EUR/JPY Outlook (26 February 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY strengthened into the resistance zone of 129.500 before weakening as a result of the surge in treasury yields that led to the strengthening of the USD.

The Japanese retail sales y/y data (Actual: -2.4%, Forecast: -2.6%, Previous: -0.2% revised from -0.3%) released earlier today indicated a further decline in consumer spending.

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.