Daily Forex Analysis - 25 January 2021

USD Overview (25 January 2021)

Last Friday, USD strengthened against most major currencies except EUR.

The flash PMI data released last Friday indicated that the manufacturing sector expanded to the highest level in nearly 14 years in January while the pace of expansion in the services sector also increase.

- Flash Manufacturing PMI (Actual: 59.1, Forecast: 56.6, Previous: 57.1 revised from 56.5)

- Flash Services PMI (Actual: 57.5, Forecast: 53.3, Previous: 54.8 revised from 55.3)

NZD/USD Outlook (25 January 2021)

Overall, NZD/USD is ranging across.

Currently, NZD/USD is moving towards the key level of 0.72. Its next support zone is at 0.70100 and the next resistance zone is at 0.72850.

Look for selling opportunities of NZD/USD if it bounces down from the key level of 0.72.

AUD/USD Outlook (25 January 2021)

Overall, AUD/USD is trending upwards.

Australian Banks will be closed tomorrow in observance of Australia Day. Expect lower trading volatility and volume during the Australian market session.

Currently, AUD/USD is testing to breaks below the key level of 0.77. Its next support zone is at 0.75000 and the next resistance zone is at 0.77900.

Look for selling opportunities of AUD/USD if it breaks below the key level of 0.77.

USD/JPY Outlook (25 January 2021)

Overall, USD/JPY is ranging across.

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

Currently, USD/JPY is moving towards the key level of 104. Its 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 (25 January 2021)

Overall, EUR/USD is ranging across.

The French flash PMI data released last Friday indicated further contraction in the services sector while the manufacturing sector continues to expand at a similar pace as the previous month.

- French Flash Service PMI (Actual: 46.5, Forecast: 48.3, Previous: 49.1 revised from 49.2)

- French Flash Manufacturing PMI (Actual: 51.5, Forecast: 50.6, Previous: 51.1)

The German Flash PMI data released last Friday indicated further contraction in the services sector while the manufacturing sector slowed down in expansion.

- German Flash Services PMI (Actual: 46.8, Forecast: 45.1, Previous: 47.0 revised from 47.7)

- German Flash Manufacturing PMI (Actual: 57.0, Forecast: 57.3, Previous: 58.3 revised from 58.6)

The eurozone flash PMI data released last Friday indicated continued contraction in the services sector while the manufacturing sector expanded at a similar pace as the previous month.

- Flash Manufacturing PMI (Actual: 54.7, Forecast: 54.5, Previous: 55.2 revised from 55.5)

- Flash Services PMI (Actual: 45.0, Forecast: 44.4, Previous: 46.4 revised from 47.3)

European Central Bank President Lagarde will be speaking later at a virtual event at 1645 (SGT). She will also be speaking at a virtual panel discussion tomorrow at 1215 (SGT). During these times, there may be volatility in EUR.

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

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (25 January 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke below the key level of 1.37.

The UK Retail Sales m/m data (Actual: 0.3%, Forecast: 1.4%, Previous: -4.1% revised from -3.8%) released last Friday indicated an increase in consumer spending in December.

Also, the UK flash PMI data released last Friday indicated a steep contraction in the services sector in January while the manufacturing sector slowed down in expansion.

- Flash Manufacturing PMI (Actual: 52.9, Forecast: 53.5, Previous: 57.5 revised from 57.3)

- Flash Services PMI (Actual: 38.8, Forecast: 45.2, Previous: 49.4 revised from 49.9)

Currently, GBP/USD is moving towards the key level of 1.37. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for selling opportunities of GBP/USD if it fails to break above the key level of 1.37.

USD/CAD Outlook (25 January 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke above the key level of 1.27.

The Canadian retail sales data released last Friday indicated an increase in consumer spending on goods excluding automobiles while no change in consumer spending when automobiles sales are included.

- Core Retail Sales m/m (Actual: 2.1%, Forecast: 0.3%, Previous: -0.2% revised from 0.0%)

- Retail Sales m/m (Forecast: 0.0%, Previous: 0.1% revised from 0.4%)

Currently, USD/CAD is testing to breaks 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 short-term buying opportunities of USD/CAD if it bounces up from the key level of 1.27.

GBP/JPY Outlook (25 January 2021)

Overall, GBP/JPY is trending upwards.

The UK Retail Sales m/m data (Actual: 0.3%, Forecast: 1.4%, Previous: -4.1% revised from -3.8%) released last Friday indicated an increase in consumer spending in December.

Also, the UK flash PMI data released last Friday indicated a steep contraction in the services sector in January while the manufacturing sector slowed down in expansion.

- Flash Manufacturing PMI (Actual: 52.9, Forecast: 53.5, Previous: 57.5 revised from 57.3)

- Flash Services PMI (Actual: 38.8, Forecast: 45.2, Previous: 49.4 revised from 49.9)

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

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

Look for short-term selling opportunities of GBP/JPY if it rejects the resistance zone of 142.200.

EUR/JPY Outlook (25 January 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke above the key level of 126.

The French flash PMI data released last Friday indicated further contraction in the services sector while the manufacturing sector continues to expand at a similar pace as the previous month.

- French Flash Service PMI (Actual: 46.5, Forecast: 48.3, Previous: 49.1 revised from 49.2)

- French Flash Manufacturing PMI (Actual: 51.5, Forecast: 50.6, Previous: 51.1)

The German Flash PMI data released last Friday indicated further contraction in the services sector while the manufacturing sector slowed down in expansion.

- German Flash Services PMI (Actual: 46.8, Forecast: 45.1, Previous: 47.0 revised from 47.7)

- German Flash Manufacturing PMI (Actual: 57.0, Forecast: 57.3, Previous: 58.3 revised from 58.6)

The eurozone flash PMI data released last Friday indicated continued contraction in the services sector while the manufacturing sector expanded at a similar pace as the previous month.

- Flash Manufacturing PMI (Actual: 54.7, Forecast: 54.5, Previous: 55.2 revised from 55.5)

- Flash Services PMI (Actual: 45.0, Forecast: 44.4, Previous: 46.4 revised from 47.3)

European Central Bank President Lagarde will be speaking later at a virtual event at 1645 (SGT). She will also be speaking at a virtual panel discussion tomorrow at 1215 (SGT). During these times, there may be volatility in EUR.

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

EUR/JPYs next support zone is at 125.000 and the next resistance zone is at 127.150.

Look for buying opportunities of EUR/JPY.