Daily Forex Analysis - 10th May 2021

USD Overview (10 May 2021)

Last week, USD weakened against all major currencies.

The Nonfarm Payrolls employment report released last Friday indicated a strong decline in the number of jobs being added into the U.S. economy in April. The number of jobs added in March was also revised downwards. Furthermore, the unemployment rate inched up as opposed to an expected fall. As a result of this poor report, USD weakened across the board.

- Average Hourly Earnings m/m (Actual: 0.7%, Forecast: 0.0%, Previous: -0.1%)

- Non-Farm Employment Change (Actual: 266K, Forecast: 990K, Previous: 770K revised from 916K)

- Unemployment Rate (Actual: 6.1%, Forecast: 5.8%, Previous: 6.0%)

NZD/USD Outlook (10 May 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD trended into the resistance zone of 0.72850.

The New Zealand Inflation Expectations q/q data (Actual: 2.05%, Forecast: NA, Previous: 1.89%) released last Friday indicated that inflation in the medium term is expected to be close to the Reserve Bank of New Zealands target of 2%.

Currently, NZD/USD is testing the resistance zone of 0.72850 and the next support zone is at 0.71000.

Look for buying opportunities of NZD/USD if it breaks the resistance zone of 0.72850.

AUD/USD Outlook (10 May 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD broke the resistance zone of 0.78000.

The Australian Retail Sales m/m data (Forecast: TBA, Previous: 1.4%) will be released later at 0930 (SGT).

AUD/USDs next support zone is at 0.78000 and the next resistance zone is at 0.80000.

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (10 May 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY trended into the support zone of 108.500.

Currently, USD/JPY is bouncing off the support zone of 108.500 and the next resistance zone is at 110.800.

Look for selling opportunities of USD/JPY if it breaks the support zone of 108.500.

EUR/USD Outlook (10 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD trended into the resistance zone of 1.21500.

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

Look for buying opportunities of EUR/USD if it breaks the resistance zone of 1.21500.

GBP/USD Outlook (10 May 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD trended into the resistance zone of 1.40000.

The UK Construction PMI data (Actual: 61.6, Forecast: 62.0, Previous: 61.7) released last Friday indicated that the construction sector continues to expand in April at around the same pace as in March.

Currently, GBP/USD is testing the resistance zone of 1.40000 and the next support zone is at 1.38000.

Look for buying opportunities of GBP/USD if it breaks the resistance zone of 1.40000.

USD/CAD Outlook (10 May 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced down from the key level of 1.22.

The Canadian employment data released last Friday a strong decline in jobs in April while unemployment rate rose as a result of the month-long nationwide lockdowns in Canada.

- Employment Change (Actual: -207.1K, Forecast: -160.5K, Previous: 303.1K)

- Unemployment Rate (Actual: 8.1%, Forecast: 7.8%, Previous: 7.5%)

The Canadian Ivey PMI data (Actual: 60.6, Forecast: 67.0, Previous: 72.9) released indicated a strong slowdown in business activities in April.

Currently, USD/CAD is testing the support zone of 1.21000 and the next resistance zone is at 1.22400.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.21000.

GBP/JPY Outlook (10 May 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke above the key level of 152.

The UK Construction PMI data (Actual: 61.6, Forecast: 62.0, Previous: 61.7) released last Friday indicated that the construction sector continues to expand in April at around the same pace as in March.

Currently, GBP/JPY is moving towards the resistance zone of 153.000 and the next support zone is at 151.000.

Look for buying opportunities of GBP/JPY if it breaks the key resistance zone of 153.000.

EUR/JPY Outlook (10 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY broke above the key level of 132.

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

Look for buying opportunities of EUR/JPY.