Daily Forex Analysis - 27 January 2021

USD Overview (27 January 2021)

Yesterday, USD weakened against all major currencies.

The Conference Board Consumer Confidence data (Actual: 89.3, Forecast: 88.9, Previous: 87.1 revised from 88.6) released yesterday indicated an increase in the level of optimism on the economic situation in the U.S.

The Federal Reserve will be announcing their monetary policy decision tomorrow at 0300 (SGT). It is expected that the central bank will hold its monetary policy unchanged.

The Fed will also be holding a press conference at 0330 (SGT). During this time, there may be volatility in USD.

NZD/USD Outlook (27 January 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke above the key level of 0.72.

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

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

AUD/USD Outlook (27 January 2021)

Overall, AUD/USD is trending upwards.

The Australian CPI q/q data (Actual: 0.9%, Forecast: 0.7%, Previous: 1.6%) released earlier today indicated a slowdown in the increase in inflation during the fourth quarter of 2020.

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

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

USD/JPY Outlook (27 January 2021)

Overall, USD/JPY is ranging across.

The Japanese Retail Sales y/y data (Forecast: -0.4%, Previous: 0.6% revised from 0.7%) will be released tomorrow at 0750 (SGT).

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 (27 January 2021)

Overall, EUR/USD is ranging across.

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 (27 January 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke above the key level of 1.37.

The UK employment data released yesterday indicated a strong decline in the number of people claiming for unemployment benefits while average earnings rose strongly. Also, unemployment rate inched slightly higher.

- Average Earnings Index 3m/y (Actual: 3.6%, Forecast: 3.0%, Previous: 2.8% revised from 2.7%)

- Claimant Count Change (Actual: 7.0K, Forecast: 47.5K, Previous: 38.1K revised from 64.3K)

- Unemployment Rate (Actual: 5.0%, Forecast: 5.1%, Previous: 4.9%)

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

Look for buying opportunities of GBP/USD if it breaks the resistance zone of 1.37800.

USD/CAD Outlook (27 January 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the resistance zone of 1.27900.

USD/CADs 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.

GBP/JPY Outlook (27 January 2021)

Overall, GBP/JPY is trending upwards.

The UK employment data released yesterday indicated a strong decline in the number of people claiming for unemployment benefits while average earnings rose strongly. Also, unemployment rate inched slightly higher.

- Average Earnings Index 3m/y (Actual: 3.6%, Forecast: 3.0%, Previous: 2.8% revised from 2.7%)

- Claimant Count Change (Actual: 7.0K, Forecast: 47.5K, Previous: 38.1K revised from 64.3K)

- Unemployment Rate (Actual: 5.0%, Forecast: 5.1%, Previous: 4.9%)

The Japanese Retail Sales y/y data (Forecast: -0.4%, Previous: 0.6% revised from 0.7%) will be released 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 buying opportunities of GBP/JPY if it breaks the resistance zone of 142.200.

EUR/JPY Outlook (27 January 2021)

Overall, EUR/JPY is ranging across.

The Japanese Retail Sales y/y data (Forecast: -0.4%, Previous: 0.6% revised from 0.7%) will be released tomorrow at 0750 (SGT).

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.