Daily Forex Analysis - 28 January 2021

USD Overview (28 January 2021)

Yesterday, USD strengthened against all major currencies after a strong sell-off in the U.S. stock market led to an increase in demand of USD after the FOMC monetary policy decision earlier today.

The FOMC held its monetary policy and interest rate unchanged. However, the central banks Chairman Powell delivered a dovish tone, saying that the U.S. economy has a long way to go from full recovery. He also highlighted that the recent resurgence of the number of COViD-19 cases has weighed on the economy.

The Advance GDP q/q data (Forecast: 4.2%, Previous: 33.4% revised from 33.1%) will be released later at 2130 (SGT).

Also, the Unemployment Claims data (Forecast: 880K, Previous: 900K) will be released at the same timing.

The New Home Sales data (Forecast: 860K, Previous: 841K) will be released later at 2300 (SGT).

NZD/USD Outlook (28 January 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke below 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 selling opportunities of NZD/USD.

AUD/USD Outlook (28 January 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD broke below the key level of 0.77.

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

Look for selling opportunities of AUD/USD.

USD/JPY Outlook (28 January 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY broke above the key level of 104.

The Japanese Unemployment Rate data (Forecast: 3.0%, Previous: 2.9%) will be released tomorrow at 0730 (SGT).

Currently, USD/JPY is moving towards the resistance zone of 104.600 and the next support zone is at 102.800.

Look for buying opportunities of USD/JPY if it breaks the resistance zone of 104.600.

EUR/USD Outlook (28 January 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD trended into the support zone of 1.20750.

The German Preliminary CPI m/m data (Forecast: 0.4%, Previous: 0.5%) will be released today at a tentative timing.

Currently, EUR/USD is testing the next support zone of 1.20750 and the next resistance zone is at 1.23170.

Look for selling opportunities of EUR/USD if it breaks the support zone of 1.20750.

GBP/USD Outlook (28 January 2021)

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

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 (28 January 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD trended into the resistance zone of 1.27900.

The Canadian Building Permits m/m data (Forecast: -4.9%, Previous: 12.9%) will be released later at 2130 (SGT).

Currently, USD/CAD is testing the resistance zone of 1.27900 and the next support zone is at 1.25720.

Look for buying opportunities of USD/CAD if it breaks the resistance zone of 1.27900.

GBP/JPY Outlook (28 January 2021)

Overall, GBP/JPY is trending upwards.

The Japanese Unemployment Rate data (Forecast: 3.0%, Previous: 2.9%) will be released tomorrow at 0730 (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 (28 January 2021)

Overall, EUR/JPY is ranging across.

The German Preliminary CPI m/m data (Forecast: 0.4%, Previous: 0.5%) will be released today at a tentative timing.

The Japanese Unemployment Rate data (Forecast: 3.0%, Previous: 2.9%) will be released tomorrow at 0730 (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.