Daily Forex Analysis - 21 April 2021

USD Overview (21 April 2021)

Yesterday, USD strengthened against most major currencies except JPY.

In a letter to Senator Rick Scott, Federal Reserve Chairman Powell wrote that inflation in the U.S. is going to be “a little higher” due to the strong recovery of the countrys economy together with supply constraints. Powell also highlighted that if high inflation becomes a burden for American, the central bank will have the tools to resolve this problem.

NZD/USD Outlook (21 April 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced down from the key level of 0.72.

The New Zealand CPI q/q data (Actual: 0.8%, Forecast: 0.8%, Previous: 0.5%) released earlier today indicated an increase in inflation during the first quarter of 2021.

Currently, NZD/USD is heading towards 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 breaks above the key level of 0.72.

AUD/USD Outlook (21 April 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD rejected the resistance zone of 0.78000.

The Australian Retail Sales m/m data (Actual: 1.4%, Forecast: 1.0%, Previous: -0.8%) released earlier today indicated a higher-than-expected increase in consumer spending.

AUD/USDs next support zone is at 0.75500 and its next resistance zone is at 0.78000.

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (21 April 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced off the resistance zone of 108.500.

Currently, USD/JPY is testing to break below the key level of 108. Its next support zone is at 106.000 and the next resistance zone is at 108.500.

Look for selling opportunities of USD/JPY if it breaks below the key level of 108.

EUR/USD Outlook (21 April 2021)

Overall, EUR/USD is ranging across.

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

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (21 April 2021)

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

The UK employment data released yesterday indicated a decrease in the number of people claiming for unemployment benefits in March while unemployment rate inched lower.

- Average Earnings Index 3m/y (Actual: 4.5%, Forecast: 4.7%, Previous: 4.8%)

- Claimant Count Change (Actual: 10.1K, Forecast: 24.5K, Previous: 67.3K revised from 86.6K)

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

The UK CPI data will be released later at 1400 (SGT).

- CPI y/y (Forecast: 0.8%, Previous: 0.4%)

- Core CPI y/y (Forecast: 1.1%, Previous: 0.9%)

Bank of England Governor Bailey will be speaking later at 1830 (SGT).

During this time, there may be volatility in GBP.

GBP/USDs next support zone is at 1.38000 and the next resistance zone is at 1.40000.

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

USD/CAD Outlook (21 April 2021)

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

The Canadian CPI m/m data (Forecast: 0.6%, Previous: 0.5%) will be released later at 2030 (SGT).

The Bank of Canada (BoC) will be announcing their monetary policy decision later at 2200 (SGT). It is expected that the central bank will be holding interest rate unchanged at 0.25%. However, due to the recent stronger-than-expected recovery in the Canadian economy, the BoC may be cutting back on its asset purchases. Doing so may lead to the strengthening of the Canadian dollar.

The central bank will also be holding a press conference after the announcement at 2300 (SGT).

During this time, there may be volatility in the Canadian dollar.

Currently, USD/CAD is testing the resistance zone of 1.26100 and the next support zone is at 1.23800.

Look for short-term selling opportunities of USD/CAD if it bounces off the resistance zone of 1.26100.

GBP/JPY Outlook (21 April 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY broke the support zone of 151.000.

The UK employment data released yesterday indicated a decrease in the number of people claiming for unemployment benefits in March while unemployment rate inched lower.

- Average Earnings Index 3m/y (Actual: 4.5%, Forecast: 4.7%, Previous: 4.8%)

- Claimant Count Change (Actual: 10.1K, Forecast: 24.5K, Previous: 67.3K revised from 86.6K)

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

The UK CPI data will be released later at 1400 (SGT).

- CPI y/y (Forecast: 0.8%, Previous: 0.4%)

- Core CPI y/y (Forecast: 1.1%, Previous: 0.9%)

Bank of England Governor Bailey will be speaking later at 1830 (SGT).

During this time, there may be volatility in GBP.

GBP/JPYs next support zone is at 148.900 and the next resistance zone is at 151.000.

Look for selling opportunities of GBP/JPY.

EUR/JPY Outlook (21 April 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY bounced off the resistance zone of 130.800.

Currently, EUR/JPY is testing to break below the key level of 130. Its next support zone is at 128.500 and the next resistance zone is at 130.800.

Look for selling opportunities of EUR/JPY if it breaks below the key level of 130.