Daily Forex Analysis - 22 February 2021

USD Overview (22 February 2021)

Last Friday, USD weakened against most major currencies except CHF.

The flash PMI data released last Friday indicated that business activities in February continue to expand at a similar pace as back in January.

- Flash Manufacturing PMI (Actual: 58.5, Forecast: 58.4, Previous: 59.2 revised from 59.1)

- Flash Services PMI (Actual: 58.9, Forecast: 57.9, Previous: 58.3 revised from 57.5)

NZD/USD Outlook (22 February 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD soared and broke the resistance zone of 0.72850 as a result of a surge in copper price to a 9-year high due to a strong demand of metal in China.

Earlier today, Standard and Poor‘s raised New Zealand credit rating from AA to AA+, thus improving the country’s outlook.

The New Zealand retail sales q/q data will be released tomorrow at 0545 (SGT).

- Retail Sales q/q (Forecast: -0.5%, Previous: 28.0%)

- Core Retail Sales q/q (Forecast: NA, Previous: 24.1%)

NZD/USDs next support zone is at 0.72850 and the next resistance zone is at 0.75300.

Look for buying opportunities of NZD/USD.

AUD/USD Outlook (22 February 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD broke the resistance zone of 0.77900 as a result of a surge in copper price to a 9-year high due to a strong demand of metal in China.

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 testing to break above the key level of 0.79. Its next support zone is at 0.77900 and the next resistance zone is at 0.80800.

Look for buying opportunities of AUD/USD if it breaks above the key level of 0.79.

USD/JPY Outlook (22 February 2021)

Overall, USD/JPY is trending upwards.

Japanese banks will be closed tomorrow in observance of the Emperors birthday. Lower trading volume and volatility is expected.

USD/JPYs next support zone is at 104.600 and the next resistance zone is at 106.000.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (22 February 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD bounced off the resistance zone of 1.21500.

The French, German and eurozone flash PMI data released last Friday indicated further contraction in the services industry as COVID-19 restrictions continue to disrupt business operations while the manufacturing sector sees a stronger expansion in February.

- French Flash Service PMI (Actual: 43.6, Forecast: 47.0, Previous: 47.3 revised from 46.5)

- French Flash Manufacturing PMI (Actual: 55.0, Forecast: 51.7, Previous: 51.6 revised from 51.5)

- German Flash Services PMI (Actual: 45.9, Forecast: 56.6, Previous: 57.1 revised from 46.8)

- German Flash Manufacturing PMI (Actual: 60.6, Forecast: 46.5, Previous: 46.7 revised from 57.0)

- Flash Manufacturing PMI (Actual: 57.7, Forecast: 54.6, Previous: 54.8 revised from 54.7)

- Flash Services PMI (Actual: 44.7, Forecast: 45.9, Previous: 45.4 revised from 45.0)

The German ifo Business Climate data (Forecast: 90.5, Previous: 90.1) will be released later at 1700 (SGT).

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for selling opportunities of EUR/USD.

GBP/USD Outlook (22 February 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD trended into the resistance zone of 1.40000.

The UK retail sales m/m data (Actual: -8.2%, Forecast: -3.0%, Previous: 0.3%) released last Friday indicated a strong decline in consumer spending in January as tighter COVID-19 measures were imposed.

The UK flash PMI data released last Friday indicated continued contraction in the services industry in February albeit at a slower pace while the manufacturing sector remains in a similar rate of expansion as in January.

- Flash Services PMI (Actual: 49.7, Forecast: 42.1, Previous; 39.5 revised from 38.8)

- Flash Manufacturing PMI (Actual: 54.9, Forecast: 53.1, Previous; 54.1 revised from 52.9)

Currently, GBP/USD is testing the resistance zone of 1.40000 and the next support zone is at 1.37800.

Look for buying opportunities of GBP/USD if it breaks the resistance zone of 1.40000.

USD/CAD Outlook (22 February 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD trended down into the support zone of 1.26100.

The Canadian retail sales m/m data released last Friday indicated the largest drop in consumer spending since last April as the resurgence of COVID-19 cases led to more social distancing measures being carried out, thus affecting the retail sector.

- Core Retail Sales m/m (Actual: -4.1%, Forecast: -2.4%, Previous: 2.9% revised from 2.1%)

- Retail Sales m/m (Actual: -3.4%, Forecast: -2.5%, Previous: 1.8% revised from 1.3%)

Currently, USD/CAD is testing the support zone of 1.26100 and the next resistance zone is at 1.28500.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.26100.

GBP/JPY Outlook (22 February 2021)

Overall, GBP/JPY is trending upwards.

The UK retail sales m/m data (Actual: -8.2%, Forecast: -3.0%, Previous: 0.3%) released last Friday indicated a strong decline in consumer spending in January as tighter COVID-19 measures were imposed.

The UK flash PMI data released last Friday indicated continued contraction in the services industry in February albeit at a slower pace while the manufacturing sector remains in a similar rate of expansion as in January.

- Flash Services PMI (Actual: 49.7, Forecast: 42.1, Previous; 39.5 revised from 38.8)

- Flash Manufacturing PMI (Actual: 54.9, Forecast: 53.1, Previous; 54.1 revised from 52.9)

Japanese banks will be closed tomorrow in observance of the Emperors birthday. Lower trading volume and volatility is expected.

Currently, GBP/JPY is testing the resistance zone of 147.800 and the next support zone is at 146.000.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 147.800.

EUR/JPY Outlook (22 February 2021)

Overall, EUR/JPY is trending upwards.

The French, German and eurozone flash PMI data released last Friday indicated further contraction in the services industry as COVID-19 restrictions continue to disrupt business operations while the manufacturing sector sees a stronger expansion in February.

- French Flash Service PMI (Actual: 43.6, Forecast: 47.0, Previous: 47.3 revised from 46.5)

- French Flash Manufacturing PMI (Actual: 55.0, Forecast: 51.7, Previous: 51.6 revised from 51.5)

- German Flash Services PMI (Actual: 45.9, Forecast: 56.6, Previous: 57.1 revised from 46.8)

- German Flash Manufacturing PMI (Actual: 60.6, Forecast: 46.5, Previous: 46.7 revised from 57.0)

- Flash Manufacturing PMI (Actual: 57.7, Forecast: 54.6, Previous: 54.8 revised from 54.7)

- Flash Services PMI (Actual: 44.7, Forecast: 45.9, Previous: 45.4 revised from 45.0)

The German ifo Business Climate data (Forecast: 90.5, Previous: 90.1) will be released later at 1700 (SGT).

Japanese banks will be closed tomorrow in observance of the Emperors birthday. Lower trading volume and volatility is expected.

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.