Daily Forex Analysis - 19 February 2021

USD Overview (19 February 2021)

Yesterday, USD weakened against all major currencies.

The U.S. housing data released yesterday indicated an increase in the number of building permits for privately-owned housing being issued while the number of houses that started construction increased at a slower pace.

- Building Permits (Actual: 1.88M, Forecast: 1.67M, Previous: 1.70M revised from 1.71M)

- Housing Starts (Actual: 1.58M, Forecast: 1.66M, Previous: 1.68M revised from 1.67M)

The flash PMI data will be released later at 2245 (SGT).

- Flash Manufacturing PMI (Forecast: 58.4, Previous: 59.2 revised from 59.1)

- Flash Services PMI (Forecast: 57.9, Previous: 58.3 revised from 57.5)

The Federal Reserve will be releasing the monetary policy report tomorrow at a tentative timing.

NZD/USD Outlook (19 February 2021)

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

Currently, NZD/USD is testing to break below the key level of 0.72. Its next support zone is at 0.71000 and the next resistance zone is at 0.72850.

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

AUD/USD Outlook (19 February 2021)

Overall, AUD/USD is ranging across.

The Australian flash PMI data released earlier today indicated a slight slowdown in the expansion of business activities in February.

- Flash Manufacturing PMI (Actual: 56.6, Forecast: NA, Previous: 57.2)

- Flash Services PMI (Actual: 54.1, Forecast: NA, Previous: 55.6 revised from 55.8)

Also, the Australian retail sales m/m data (Actual: 0.6%, Forecast: 2.1%, Previous: -4.1%) released indicated a recovery from previous months decline in consumer spending although the recovery was lower than expected.

Currently, AUD/USD is moving towards the resistance zone of 0.77900 the next support zone is at 0.76000.

Look for buying opportunities of AUD/USD if it breaks the resistance zone of 077900.

USD/JPY Outlook (19 February 2021)

Overall, USD/JPY is trending upwards.

The Japanese flash manufacturing PMI data (Actual: 50.6, Forecast: 50.0, Previous: 49.8 revised from 49.7) released earlier today indicated a recovery of the manufacturing sector from the contractionary level into the expansionary level.

Currently, USD/JPY is testing the resistance zone of 105.800 and the next support zone is at 104.600.

Look for selling opportunities of USD/JPY if it bounces off the resistance zone of 105.800.

EUR/USD Outlook (19 February 2021)

Overall, EUR/USD is ranging across.

The French flash PMI data will be released later at 1615 (SGT).

- French Flash Service PMI (Forecast: 47.0, Previous: 47.3 revised from 46.5)

- French Flash Manufacturing PMI (Forecast: 51.7, Previous: 51.6 revised from 51.5)

The German Flash PMI data will be released later at 1630 (SGT).

- German Flash Services PMI (Forecast: 56.6, Previous: 57.1 revised from 46.8)

- German Flash Manufacturing PMI (Forecast: 46.5, Previous: 46.7 revised from 57.0)

The eurozone flash PMI data will be released later at 1700 (SGT).

- Flash Manufacturing PMI (Forecast: 54.6, Previous: 54.8 revised from 54.7)

- Flash Services PMI (Forecast: 45.9, Previous: 45.4 revised from 45.0)

Currently, EUR/USD is testing the resistance zone of 1.20750 and the next support zone is at 1.18800.

If EUR/USD bounces off the resistance zone, look for short-term selling opportunities of EUR/USD up until the release of the eurozone PMI data.

GBP/USD Outlook (19 February 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke above the key level of 1.39.

The UK retail sales m/m data (Forecast: -3.0%, Previous: 0.3%) will be released later at 1500 (SGT).

Also, the UK flash PMI data will be released later at 1730 (SGT).

- Flash Services PMI (Forecast: 42.1, Previous; 39.5 revised from 38.8)

- Flash Manufacturing PMI (Forecast: 53.1, Previous; 54.1 revised from 52.9)

GBP/USDs next support zone is at 1.37800 and the next resistance zone is at 1.40000.

Look for buying opportunities of GBP/USD.

USD/CAD Outlook (19 February 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced down from the key level of 1.27.

The Canadian retail sales m/m data will be released later at 2130 (SGT).

- Core Retail Sales m/m (Forecast: -2.4%, Previous: 2.1%)

- Retail Sales m/m (Forecast: -2.5%, Previous: 1.3%)

Currently, USD/CAD is testing to break above the key level of 1.27. Its next support zone is at 1.26100 and the next resistance zone is at 1.28500.

Look for buying opportunities of USD/CAD if it breaks above the key level of 1.27.

GBP/JPY Outlook (19 February 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY trended into the resistance zone of 147.800.

The Japanese flash manufacturing PMI data (Actual: 50.6, Forecast: 50.0, Previous: 49.8 revised from 49.7) released earlier today indicated a recovery of the manufacturing sector from the contractionary level into the expansionary level.

The UK retail sales m/m data (Forecast: -3.0%, Previous: 0.3%) will be released later at 1500 (SGT).

Also, the UK flash PMI data will be released later at 1730 (SGT).

- Flash Services PMI (Forecast: 42.1, Previous; 39.5 revised from 38.8)

- Flash Manufacturing PMI (Forecast: 53.1, Previous; 54.1 revised from 52.9)

GBP/JPYs next support zone is at 146.000 and the next resistance zone is at 147.800.

Look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (19 February 2021)

Overall, EUR/JPY is trending upwards.

The Japanese flash manufacturing PMI data (Actual: 50.6, Forecast: 50.0, Previous: 49.8 revised from 49.7) released earlier today indicated a recovery of the manufacturing sector from the contractionary level into the expansionary level.

The French flash PMI data will be released later at 1615 (SGT).

- French Flash Service PMI (Forecast: 47.0, Previous: 47.3 revised from 46.5)

- French Flash Manufacturing PMI (Forecast: 51.7, Previous: 51.6 revised from 51.5)

The German Flash PMI data will be released later at 1630 (SGT).

- German Flash Services PMI (Forecast: 56.6, Previous: 57.1 revised from 46.8)

- German Flash Manufacturing PMI (Forecast: 46.5, Previous: 46.7 revised from 57.0)

The eurozone flash PMI data will be released later at 1700 (SGT).

- Flash Manufacturing PMI (Forecast: 54.6, Previous: 54.8 revised from 54.7)

- Flash Services PMI (Forecast: 45.9, Previous: 45.4 revised from 45.0)

EUR/JPYs next support zone is at 127.150 and the next resistance zone is at 129.500.

Look for buying opportunities of EUR/JPY.