Daily Forex Analysis - 11th May 2021

USD Overview (11 May 2021)

Yesterday, USD strengthened against most major currencies except GBP and CAD.

Responding to the poor jobs report, Chicago Federal Reserve President Charles Evans said in an interview that for him to change his stance on monetary policy, inflation and employment in the U.S. will have to strengthened further. He also emphasized that inflation is currently still below the central banks target of 2% and will need to be above that target for a period of time before averaging at that level.

Four members of the Federal Reserve will take turn to speak from 2230 (SGT) onwards. During this time, there may be volatility in USD.

NZD/USD Outlook (11 May 2021)

Overall, NZD/USD is trending upwards.

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

Look for short-term selling opportunities of NZD/USD if it bounces off the resistance zone of 0.72850.

AUD/USD Outlook (11 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 (Actual: 1.3%, Forecast: TBA, Previous: 1.4%) released yesterday indicated a slight fall in consumer spending in March.

The Australia Treasury will be releasing their annual budget later at 1730 (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 (11 May 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced off the support zone of 108.500.

Currently, USD/JPY is moving towards the key level of 109. Its next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY if it breaks above the key level of 109.

EUR/USD Outlook (11 May 2021)

Overall, EUR/USD is trending upwards.

The eurozone and German ZEW economic sentiment data will be released later at 1700 (SGT).

- Eurozone ZEW Economic Sentiment (Forecast: 68.0, Previous: 66.3)

- German ZEW Economic Sentiment (Forecast: 72.0, Previous: 70.7)

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 (11 May 2021)

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

Bank of England Governor Bailey will be speaking later at 2230 (SGT). During this time, there may be volatility in GBP.

GBP/USDs next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for buying opportunities of GBP/USD.

USD/CAD Outlook (11 May 2021)

Overall, USD/CAD is trending downwards.

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 (11 May 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke the resistance zone of 153.000.

Bank of England Governor Bailey will be speaking later at 2230 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/JPY is moving towards the key level of 154. Its next support zone is at 153.000 and the next resistance zone of 155.000.

Look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (11 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced up from the key level of 132.

The eurozone and German ZEW economic sentiment data will be released later at 1700 (SGT).

- Eurozone ZEW Economic Sentiment (Forecast: 68.0, Previous: 66.3)

- German ZEW Economic Sentiment (Forecast: 72.0, Previous: 70.7)

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.