Daily Forex Analysis - 29 January 2021

USD Overview (29 January 2021)

Yesterday, USD weakened against most major currencies except CAD, JPY and CHF.

The Advance GDP q/q data (Actual: 4.0%, Forecast: 4.2%, Previous: 33.4% revised from 33.1%) released yesterday indicated a strong slowdown in economic growth during the fourth quarter of 2020.

Also, the Unemployment Claims data (Actual: 874K, Forecast: 880K, Previous: 914K revised from 900K) released yesterday indicated a decline in the number of people claiming for unemployment benefits last week.

The New Home Sales data (Actual: 842K, Forecast: 860K, Previous: 829K revised from 841K) released indicated an increase in new residential home sales in December.

The Revised UoM Consumer Sentiment data (Forecast: 79.2, Previous: 79.2) will be released later at 2300 (SGT).

NZD/USD Outlook (29 January 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced off the support zone of 0.71000.

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (29 January 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD bounced down from 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 (29 January 2021)

Overall, USD/JPY is trending upwards.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.0%, Previous: 2.9%) released earlier today indicated no change in the unemployment level in December from November.

Currently, USD/JPY is testing 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 (29 January 2021)

Overall, EUR/USD is trending downwards.

The German Preliminary CPI m/m data (Actual: 0.8%, Forecast: 0.4%, Previous: 0.5%) released yesterday indicated an increase in inflation in Germany this month.

The French Preliminary GDP q/q data (Forecast: -4.0%, Previous: 18.7% revised from 18.2%) will be released later at 1430 (SGT).

The German Preliminary GDP q/q data (Forecast: 0.0%, Previous: 8.2%) will be released later at 1500 (SGT).

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 (29 January 2021)

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

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 short-term selling opportunities of GBP/USD if it breaks below the key level of 1.37.

USD/CAD Outlook (29 January 2021)

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

The Canadian Building Permits m/m data (Actual: -4.1%, Forecast: -4.9%, Previous: 12.5% revised from 12.9%) released yesterday indicated a decline in the number of building permits being issued in December.

The Canadian GDP m/m data (Forecast: 0.4%, Previous: 0.4%) will be released later at 2130 (SGT).

USD/CADs next support zone is at 1.27900 and the next resistance zone is at 1.29800.

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

GBP/JPY Outlook (29 January 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke the resistance zone of 142.200.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.0%, Previous: 2.9%) released earlier today indicated no change in the unemployment level in December from November.

GBP/JPYs next support zone is at 142.200 and the next resistance zone of 144.000.

Look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (29 January 2021)

Overall, EUR/JPY is ranging across.

The German Preliminary CPI m/m data (Actual: 0.8%, Forecast: 0.4%, Previous: 0.5%) released yesterday indicated an increase in inflation in Germany this month.

The Japanese Unemployment Rate data (Actual: 2.9%, Forecast: 3.0%, Previous: 2.9%) released earlier today indicated no change in the unemployment level in December from November.

The French Preliminary GDP q/q data (Forecast: -4.0%, Previous: 18.7% revised from 18.2%) will be released later at 1430 (SGT).

The German Preliminary GDP q/q data (Forecast: 0.0%, Previous: 8.2%) will be released later at 1500 (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.