Daily Forex Analysis - 05 January 2021

USD Overview (05 January 2021)

Yesterday, USD strengthened against most major currencies except EUR, JPY and CHF.

The U.S. Senate runoff elections in Georgia will be held today. This election will determine which party has a majority in the U.S. Senate.

Also, day two of the OPEC-JMMC meetings will be held today.

The ISM Manufacturing PMI data (Forecast: 56.6, Previous: 57.5) will be released later at 2300 (SGT).

NZD/USD Outlook (05 January 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD broke the support zone of 0.72000.

Currently, NZD/USD is testing the resistance zone of 0.72000 and the next support zone is at 0.70100.

Look for short-term selling opportunities of NZD/USD if it bounces off the resistance zone of 0.72000.

AUD/USD Outlook (05 January 2021)

Overall, AUD/USD is trending upwards.

Currently, AUD/USD is testing the resistance zone of 0.76800 and the next support zone is at 0.73900.

Look for short-term selling opportunities of AUD/USD if it bounces off the resistance zone of 0.76800.

USD/JPY Outlook (05 January 2021)

Overall, USD/JPY is trending downwards.

Currently, USD/JPY is testing the support zone of 103.000 and the next resistance zone is at 104.600.

Look for selling opportunities of USD/JPY if it breaks the support zone of 103.000.

EUR/USD Outlook (05 January 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD bounced down from the key level of 1.23.

Earlier today, Germany has extended their COVID-19 lockdown until 31 January in an effort to control the infection rate.

The Germany Unemployment Change data (Forecast: 10K, Previous: -39K) will be released later at 1655 (SGT).

EUR/USDs next support zone is at 1.21800 and the next resistance zone is at 1.24800.

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

GBP/USD Outlook (05 January 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced down from the key level of 1.37.

Yesterday, UK Prime Minister Boris Johnson announced a third lockdown across England amid the rise in COVID-19 cases.

GBP/USDs next support zone is at 1.34800 and the next resistance zone is at 1.37800.

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

USD/CAD Outlook (05 January 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD trended upwards and bounced off the resistance zone of 1.27900.

The Canadian Manufacturing PMI data (Actual: 57.9, Forecast: NA, Previous: 55.8) released yesterday indicated an increase in the rate of expansion in the manufacturing sector during December.

USD/CADs next support zone is at 1.25720 and the next resistance zone is at 1.27900.

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

GBP/JPY Outlook (05 January 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY trended into the support zone of 140.000.

Yesterday, UK Prime Minister Boris Johnson announced a third lockdown across England amid the rise in COVID-19 cases.

Currently, GBP/JPY is testing the support zone of 140.000 and the next resistance zone is at 142.200.

Look for short-term selling opportunities of GBP/JPY if it breaks the support zone of 140.000.

EUR/JPY Outlook (05 January 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY bounced off the resistance zone of 126.800.

Earlier today, Germany has extended their COVID-19 lockdown until 31 January in an effort to control the infection rate.

The Germany Unemployment Change data (Forecast: 10K, Previous: -39K) will be released later at 1655 (SGT).

EUR/JPYs next support zone is at 124.750 and the next resistance zone is at 126.800.

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