Daily Forex Analysis - 07 January 2021

USD Overview (07 January 2021)

Yesterday, USD weakened against EUR. AUD and NZD.

The ADP Non-Farm Employment Change data (Actual: -123K, Forecast: 60K, Previous: 304K revised from 307K) released yesterday indicated a decline in the number of private employment in December.

It was reported yesterday that the Democratic Party has won the U.S. Senate election.

In the released minutes for the previous monetary policy meeting, the Federal Reserve expressed optimism in the U.S. economic growth, lowering projections for the unemployment rate.

The U.S. ISM Services PMI data (Forecast: 54.5, Previous: 55.9) will be released later at 2300 (SGT).

NZD/USD Outlook (07 January 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD trended into the key level of 0.73000.

Currently, NZD/USD is testing to break above the key level of 0.73. Its next support zone is at 0.72000 and the next resistance zone is at 0.73700.

Look for buying opportunities of NZD/USD if it breaks above the key level of 0.73.

AUD/USD Outlook (07 January 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD trended into the key level of 0.78.

The Australian Building Approvals m/m data (Actual: 2.6%, Forecast: 1.9%, Previous: 3.3% revised from 3.8%) released earlier today indicated a slowdown in the number of building permits issued by the Australian government.

Currently, AUD/USD is hovering around the key level of 0.78. Its next support zone is at 0.76800 and the next resistance zone is at 0.79100.

Look for buying opportunities of AUD/USD if it breaks above the key level of 0.78.

USD/JPY Outlook (07 January 2021)

Overall, USD/JPY is trending downwards. Recently, USD/JPY trended into the resistance zone of 103.000.

Currently, USD/JPY is testing the resistance zone of 103.000 and the next support zone is at 101.250.

Look for selling opportunities of USD/JPY if it bounces off the resistance zone of 103.000.

EUR/USD Outlook (07 January 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke above the key level of 1.23.

The German Preliminary CPI m/m data (Actual: 0.5%, Forecast: 0.6%, Previous: -0.8%) released yesterday indicated a recovery in inflation in December.

The French Preliminary CPI m/m data (Actual: 0.2%, Forecast: 0.4%, Previous: 0.2%) released yesterday indicated continued increase in inflation in December.

The eurozone CPI flash estimate y/y data will be released later at 1800 (SGT).

- CPI Flash Estimate y/y (Forecast: -0.2%, Previous: -0.3%)

- Core CPI Flash Estimate y/y (Forecast: 0.2%, Previous: 0.2%)

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

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (07 January 2021)

Overall, GBP/USD is trending upwards.

The UK Construction PMI data (Forecast: 54.6, Previous: 54.7) will be released later at 1730 (SGT).

Currently, GBP/USD is hovering around the key level of 1.36. Its 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 if it breaks below the key level of 1.36.

USD/CAD Outlook (07 January 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD tested but failed to break above the key level of 1.27.

The Canadian Ivey PMI data (Forecast: 53.1, Previous: 52.7) will be released later at 2300 (SGT).

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 (07 January 2021)

Overall, GBP/JPY is ranging across.

The UK Construction PMI data (Forecast: 54.6, Previous: 54.7) will be released later at 1730 (SGT).

Currently, GBP/JPY is testing the resistance zone of 140.000 and the next support zone is at 137.500.

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

EUR/JPY Outlook (07 January 2021)

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

The German Preliminary CPI m/m data (Actual: 0.5%, Forecast: 0.6%, Previous: -0.8%) released yesterday indicated a recovery in inflation in December.

The French Preliminary CPI m/m data (Actual: 0.2%, Forecast: 0.4%, Previous: 0.2%) released yesterday indicated continued increase in inflation in December.

The eurozone CPI flash estimate y/y data will be released later at 1800 (SGT).

- CPI Flash Estimate y/y (Forecast: -0.2%, Previous: -0.3%)

- Core CPI Flash Estimate y/y (Forecast: 0.2%, Previous: 0.2%)

EUR/JPYs next support zone is at 126.800 and the next resistance zone is at 129.500.

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