Daily Forex Analysis - 21 December 2020

USD Overview (21 December 2020)

Last Friday, USD strengthened against most major currencies except AUD and CHF.

During the release of the bank stress test results last week, the Federal Reserve announced that the U.S. big banks will be allowed to resume share buybacks during the first quarter of 2021.

Also, the FDA has approved Modernas vaccine for emergency use.

Earlier today, the Congress has agreed to a $900 billion COVID-19 relief package.

NZD/USD Outlook (21 December 2020)

Overall, NZD/USD is trending upwards.

Currently, NZD/USD is testing to break below the key level of 0.71. Its next support zone is at 0.70000 and the next resistance zone is at 0.72000.

Look for short-term selling opportunities of NZD/USD if it breaks below the key level of 0.72.

AUD/USD Outlook (21 December 2020)

Overall, AUD/USD is trending upwards.

The Australian Retail Sales m/m data (Forecast: 2.5%, Previous: 1.4%) will be released tomorrow at 0830 (SGT).

AUD/USDs next support zone is at 0.73900 and the next resistance zone is at 0.76800.

Look for short-term selling opportunities of AUD/USD.

USD/JPY Outlook (21 December 2020)

Overall, USD/JPY is trending downwards.

Currently, USD/JPY is testing the resistance zone of 103.400 and the next support zone is at 102.300.

Look for selling opportunities of USD/JPY if it rejects the resistance zone of 103.400.

EUR/USD Outlook (21 December 2020)

Overall, EUR/USD is trending upwards. Recently, EUR/USD trended down into the support zone of 1.21800.

The German ifo Business Climate data (Actual: 92.1, Forecast: 90.2, Previous: 90.9 revised from 90.7) released last Friday indicated an unexpected rise in the ratings of the current business conditions and expectations from the surveyed businesses.

The eurozone Consumer Confidence data (Forecast: -18, Previous: -18) will be released later at 2300 (SGT).

Currently, EUR/USD is testing the support zone of 1.21800 and the next resistance zone is at 1.24800.

Look for short-term selling opportunities of EUR/USD if it breaks the support zone of 1.21800.

GBP/USD Outlook (21 December 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD gapped below the support zone of 1.34600 after it was reported that a new COVID-19 strain in Britain is up to 70% more transmissible than the original.

The UK Retail Sales m/m data (Actual: -3.8%, Forecast: -4.0%, Previous: 1.3% revised from 1.2%) released last Friday indicated a strong decline in consumer spending due to the return of nationwide lockdown in November.

GBP/USDs next support zone is at 1.34600 and the next resistance zone is at 1.38160.

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

USD/CAD Outlook (21 December 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke the resistance zone of 1.27900.

The Canadian retail sales data released last Friday indicated an overall slowdown in consumer spending in October.

- Core Retail Sales m/m (Actual: 0.0%, Forecast: 0.1%, Previous: 1.9% revised from 1.0%)

- Retail Sales m/m (Actual: 0.4%, Forecast: 0.1%, Previous: 1.9% revised from 1.1%)

USD/CADs next support zone is at 1.27900 and the next resistance zone is at 1.29800.

Look for buying opportunities of USD/CAD.

GBP/JPY Outlook (21 December 2020)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY gapped down after it was reported that a new COVID-19 strain in Britain is up to 70% more transmissible than the original.

The UK Retail Sales m/m data (Actual: -3.8%, Forecast: -4.0%, Previous: 1.3% revised from 1.2%) released last Friday indicated a strong decline in consumer spending due to the return of nationwide lockdown in November.

Currently, GBP/JPY is testing to break below the key level of 138. Its next support zone is at 137.500 and the next resistance zone of 140.000.

Look for short-term selling opportunities of GBP/JPY if it breaks below the key level of 138.

EUR/JPY Outlook (21 December 2020)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY rejected the resistance zone of 126.700.

The German ifo Business Climate data (Actual: 92.1, Forecast: 90.2, Previous: 90.9 revised from 90.7) released last Friday indicated an unexpected rise in the ratings of the current business conditions and expectations from the surveyed businesses.

The eurozone Consumer Confidence data (Forecast: -18, Previous: -18) will be released later at 2300 (SGT).

Currently, EUR/JPY is testing to break below the key level of 126. Its next support zone is at 124.750 and the next resistance zone is at 126.700.

Look for short-term selling opportunities of EUR/JPY if it breaks below the key level of 126.