Daily Forex Analysis - 20 January 2021

USD Overview (20 January 2021)

Yesterday, USD weakened against most major currencies except JPY.

President-elect Biden will be speaking tomorrow at the 59th Presidential Inauguration at tentative timing. During this time, there may be volatility in USD.

NZD/USD Outlook (20 January 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced up from the key level of 0.71.

NZD/USDs next support zone is at 0.70100 and the next resistance zone is at 0.72850.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (20 January 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD bounced up from the key level of 0.77.

The Australian Westpac Consumer Sentiment data (Actual: -4.5%, Forecast: NA, Previous: 4.1%) released earlier today indicated a decline in the level of confidence on the Australian economy due to domestic border closures resulting from the rise in COVID clusters in some states.

The Australian employment data will be released tomorrow at 0830 (SGT).

- Employment Change (Forecast: 50.0K, Previous: 90.0K)

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

AUD/USDs next support zone is at 0.75000 and the next resistance zone is at 0.77900.

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (20 January 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced down from the key level of 104.

The Bank of Japan will be announcing their interest rate decision tomorrow at a tentative timing.

A press conference will also be held. During this time, volatility is expected of JPY.

USD/JPYs next support zone is at 102.800 and the next resistance zone of 104.600.

Look for selling opportunities of USD/JPY.

EUR/USD Outlook (20 January 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD broke above the key level of 1.21.

The German ZEW Economic Sentiment data released yesterday indicated an increased optimism in the outlook of Germans economy despite the return of the COVID-19 lockdown. The eurozone ZEW Economic Sentiment data released indicated a strong increase in optimism in the outlook of the eurozone economy.

- Eurozone ZEW Economic Sentiment (Actual: 58.3, Forecast: 54.1, Previous: 54.4)

- German ZEW Economic Sentiment (Actual: 61.8, Forecast: 55.1, Previous: 55.0)

The final CPI y/y data will be released later at 1800 (SGT).

- Final CPI y/y (Forecast: -0.3%, Previous: -0.3%)

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

EUR/USDs next support zone is at 1.20750 and the next resistance zone is at 1.23170.

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

GBP/USD Outlook (20 January 2021)

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

The UK CPI y/y data will be released later at 1500 (SGT).

- CPI y/y (Forecast: 0.5%, Previous: 0.3%)

- Core CPI y/y (Forecast: 1.3%, Previous: 1.1%)

Bank of England Governor Bailey will be speaking at a virtual Citizens Panel Open Forum tomorrow at 0100 (SGT). During this time, there may be volatility in GBP.

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

Look for buying opportunities of GBP/USD.

USD/CAD Outlook (20 January 2021)

Overall, USD/CAD is ranging across.

The Canadian CPI m/m data (Forecast: 0.1%, Previous: 0.1%) will be released later at 2130 (SGT).

The Bank of Canada will be announcing their interest rate decision later at 2300 (SGT).

A press conference will be held tomorrow at 0000 (SGT). During this time, volatility is expected of CAD.

Currently, USD/CAD is testing to break below the key level of 1.27. Its next support zone is at 1.25720 and the next resistance zone is at 1.27900.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (20 January 2021)

Overall, GBP/JPY is trending upwards.

The UK CPI y/y data will be released later at 1500 (SGT).

- CPI y/y (Forecast: 0.5%, Previous: 0.3%)

- Core CPI y/y (Forecast: 1.3%, Previous: 1.1%)

Bank of England Governor Bailey will be speaking at a virtual Citizens Panel Open Forum tomorrow at 0100 (SGT). During this time, there may be volatility in GBP.

The Bank of Japan will be announcing their interest rate decision tomorrow at a tentative timing.

A press conference will also be held. During this time, volatility is expected of JPY.

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

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 142.200.

EUR/JPY Outlook (20 January 2021)

Overall, EUR/JPY is trending downwards.

The eurozone and German ZEW Economic Sentiment data will be released later at 1800 (SGT).

- Eurozone ZEW Economic Sentiment (Forecast: 54.1, Previous: 54.4)

- German ZEW Economic Sentiment (Forecast: 55.1, Previous: 55.0)

Currently, EUR/JPY is testing to break above the key level of 126. Its next support zone is at 125.000 and the next resistance zone is at 127.150.

Look for buying opportunities of EUR/JPY if it breaks above the key level of 126.