Daily Forex Analysis - 08 January 2021

USD Overview (08 January 2021)

Yesterday, USD strengthened against all major currencies.

The U.S. ISM Services PMI data (Actual: 57.2, Forecast: 54.5, Previous: 55.9) released yesterday indicated an increase in the pace of expansion of the services sector in December.

The U.S. Non-Farm Payroll data will be released later at 2130 (SGT).

- Average Hourly Earnings m/m (Forecast: 0.2%, Previous: 0.3%)

- Non-Farm Employment Change (Forecast: 68K, Previous: 245K)

- Unemployment Rate (Forecast: 6.8%, Previous: 6.7%)

NZD/USD Outlook (08 January 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced down from the key level of 0.73000.

NZD/USDs next support zone is at 0.72000 and the next resistance zone is at 0.73700.

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

AUD/USD Outlook (08 January 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD bounced down from the key level of 0.78.

The Australian Retail Sales m/m data (Forecast: NA, Previous: 7.0%) will be released next Monday at 0830 (SGT).

AUD/USD next support zone is at 0.76800 and the next resistance zone is at 0.79100.

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

USD/JPY Outlook (08 January 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY broke the resistance zone of 103.000.

Japanese banks will be close next Monday in observance of Coming-of-Age Day. Lower volatility and trading volume is expected during the Japanese market session.

USD/JPYs next support zone is at 103.000 and the next resistance zone of 104.600.

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

EUR/USD Outlook (08 January 2021)

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

The eurozone CPI flash estimate y/y data released yesterday indicated no change in the rate of inflation from the previous month.

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

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

The eurozone unemployment rate data (Forecast: 8.5%, Previous: 8.4%) will be released later at 1800 (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 (08 January 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke below the key level of 1.36.

The UK Construction PMI data (Actual: 54.6, Forecast: 54.6, Previous: 54.7) released yesterday indicated continued expansion in the construction sector in December.

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 (08 January 2021)

Overall, USD/CAD is trending downwards.

The Canadian Ivey PMI data (Actual: 46.7, Forecast: 53.1, Previous: 52.7) released yesterday indicated a contraction in business activities in December.

The Canadian employment data will be released later at 2130 (SGT).

- Employment Change (Forecast: -32.5K, Previous: 62.1K)

- Unemployment Rate (Forecast: 8.7%, Previous: 8.5%)

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 (08 January 2021)

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

The UK Construction PMI data (Actual: 54.6, Forecast: 54.6, Previous: 54.7) released yesterday indicated continued expansion in the construction sector in December.

Japanese banks will be close next Monday in observance of Coming-of-Age Day. Lower volatility and trading volume is expected during the Japanese market session.

Currently, GBP/JPY is testing to break above the key level of 141. Its next support zone is at 140.000 and the next resistance zone is at 142.200.

Look for short-term selling opportunities of GBP/JPY if it bounces down from the key level of 141.

EUR/JPY Outlook (08 January 2021)

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

Japanese banks will be close next Monday in observance of Coming-of-Age Day. Lower volatility and trading volume is expected during the Japanese market session.

The eurozone CPI flash estimate y/y data released yesterday indicated no change in the rate of inflation from the previous month.

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

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

The eurozone unemployment rate data (Forecast: 8.5%, Previous: 8.4%) will be released later at 1800 (SGT).

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.