Daily Forex Analysis - 28 December 2020

USD Overview (28 December 2020)

Last Thursday, USD weakened against most major currencies except EUR, JPY and CHF.

Earlier today, it was reported that President Donald Trump signed a $900 billion pandemic relief bill.

The Final GDP q/q data (Actual: 33.4%, Forecast: 33.1%, Previous: 33.1%) released last Tuesday indicated a slight upwards revision of the GDP during the third quarter.

The New Home Sales data (Actual: 841K, Forecast: 994K, Previous: 945K) released last Thursday indicated a slowdown in the number of single-family houses sold in November.

NZD/USD Outlook (28 December 2020)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke above the key level of 0.71.

New Zealand banks will be closed today in observance of Boxing Day. Expect lower than usual trading volatility and volume during the New Zealand market session.

NZD/USDs next support zone is at 0.70000 and the next resistance zone is at 0.72000.

Look for short-term buying opportunities of NZD/USD.

AUD/USD Outlook (28 December 2020)

Overall, AUD/USD is trending upwards.

Australian banks will be closed today in observance of Boxing Day. Expect lower than usual trading volatility and volume during the Australian market session.

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

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

USD/JPY Outlook (28 December 2020)

Overall, USD/JPY is ranging across.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.1%, Previous: 3.1%) released last Friday indicated a decline in jobless rate.

The Japanese Retail Sales y/y data (Actual: 0.7%, Forecast: 1.8%, Previous: 6.4%) released last Friday indicated a strong slowdown in consumer spending.

The Japanese Housing Starts y/y data (Actual: -3.7%, Previous: -4.8%, Previous: -8.3%) released last Friday indicated a slowdown in the decline of the number of new houses that began construction.

Currently, USD/JPY is testing the support zone of 103.400 and the next resistance zone is at 104.600.

Look for buying opportunities of USD/JPY if it bounced off the support zone of 103.400.

EUR/USD Outlook (28 December 2020)

Overall, EUR/USD is trending upwards. Recently, EUR/USD has been ranging across.

Last week, a post-Brexit trade deal was finalized between the EU and the UK. The UK Parliament will be debating on the legislation on 30 December for approval of the deal. As it will be too late for the EU to hold a voting session before the end of the transition period on 31 December, the Members of the European Parliament will meet in 2021 instead.

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

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

GBP/USD Outlook (28 December 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the resistance zone of 1.34600.

The UK Final GDP q/q data (Actual: 16.0%, Forecast: 15.5%, Previous: 15.5%) released last Tuesday indicated a slight upward revision of GDP during the third quarter.

Last week, a post-Brexit trade deal was finalized between the EU and the UK. The UK Parliament will be debating on the legislation on 30 December for approval of the deal. As it will be too late for the EU to hold a voting session before the end of the transition period on 31 December, the Members of the European Parliament will meet in 2021 instead.

UK banks will be closed today in observance of Boxing Day. Expect lower than usual trading volatility and volume during the London market session.

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

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

USD/CAD Outlook (28 December 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced down from the key level of 1.29.

The Canadian GDP m/m data (Actual: 0.4%, Forecast: 0.3%, Previous: 0.8%) indicated a slowdown in economic growth in October.

Canadian banks will be closed today in observance of Boxing Day. Expect lower than usual trading volatility and volume during the Canadian market session.

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

Look for short-term buying opportunities of USD/CAD.

GBP/JPY Outlook (28 December 2020)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY broke the resistance zone of 140.000.

The UK Final GDP q/q data (Actual: 16.0%, Forecast: 15.5%, Previous: 15.5%) released last Tuesday indicated a slight upward revision of GDP during the third quarter.

Last week, a post-Brexit trade deal was finalized between the EU and the UK. The UK Parliament will be debating on the legislation on 30 December for approval of the deal. As it will be too late for the EU to hold a voting session before the end of the transition period on 31 December, the Members of the European Parliament will meet in 2021 instead.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.1%, Previous: 3.1%) released last Friday indicated a decline in jobless rate.

The Japanese Retail Sales y/y data (Actual: 0.7%, Forecast: 1.8%, Previous: 6.4%) released last Friday indicated a strong slowdown in consumer spending.

The Japanese Housing Starts y/y data (Actual: -3.7%, Previous: -4.8%, Previous: -8.3%) released last Friday indicated a slowdown in the decline of the number of new houses that began construction.

UK banks will be closed today in observance of Boxing Day. Expect lower than usual trading volatility and volume during the London market session.

GBP/JPYs next support zone is at 140.000 and the next resistance zone is at 142.200.

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

EUR/JPY Outlook (28 December 2020)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY has been ranging across.

Last week, a post-Brexit trade deal was finalized between the EU and the UK. The UK Parliament will be debating on the legislation on 30 December for approval of the deal. As it will be too late for the EU to hold a voting session before the end of the transition period on 31 December, the Members of the European Parliament will meet in 2021 instead.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.1%, Previous: 3.1%) released last Friday indicated a decline in jobless rate.

The Japanese Retail Sales y/y data (Actual: 0.7%, Forecast: 1.8%, Previous: 6.4%) released last Friday indicated a strong slowdown in consumer spending.

The Japanese Housing Starts y/y data (Actual: -3.7%, Previous: -4.8%, Previous: -8.3%) released last Friday indicated a slowdown in the decline of the number of new houses that began construction.

Currently, EUR/JPY is moving towards the resistance zone of 126.700 and the next support zone is at 124.750.

Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 126.700.