Daily Forex Analysis - 21th May 2021

USD Overview (21 May 2021)

Yesterday, USD weakened against all major currencies.

The Unemployment Claims data (Actual: 444K, Forecast: 453K, Previous: 478K revised from 473K) released yesterday indicated further decline in the number of people claiming unemployment benefits last week.

The flash PMI data will be released later at 2145 (SGT).

- Flash Manufacturing PMI (Forecast: 60.0, Previous: 60.5 revised from 60.6)

- Flash Services PMI (Forecast: 64.3, Previous: 64.7 revised from 63.1)

FOMC committee member Daly will be speaking tomorrow at 0130 (SGT). During this time, there may be volatility in USD.

NZD/USD Outlook (21 May 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD trended up and failed to break above the key level of 0.72.

The New Zealand retail sales q/q data will be released next Monday at 0645 (SGT).

- Retail Sales q/q (Forecast: TBA, Previous: -2.7%)

- Core Retail Sales q/q (Forecast: TBA, Previous: -3.1%)

Currently, NZD/USD is testing to break above 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 selling opportunities of NZD/USD if it fails to break above the key level of 0.72.

AUD/USD Outlook (21 May 2021)

Overall, AUD/USD is ranging across.

The Australian flash PMI data released earlier today indicated little change in business activities in May.

- Flash Manufacturing PMI (Actual: 59.9, Forecast: NA, Previous: 59.7 revised from 59.6)

- Flash Services PMI (Actual: 58.2, Forecast: NA, Previous: 58.8 revised from 58.6)

Also, the Australian Retail Sales m/m data (Actual: 1.1%, Forecast: 0.5%, Previous: 1.3%) released indicated a slight slowdown in consumer spending in April.

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

Look for short-term selling opportunities of AUD/USD.

USD/JPY Outlook (21 May 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke below the key level of 109.

Currently, USD/JPY is moving towards the key level of 109. Its next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY if it breaks above the key level of 109.

EUR/USD Outlook (21 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD bounced off the support zone of 1.21500 and broke above the key level of 1.22.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Manufacturing PMI (Forecast: 58.6, Previous: 58.9 revised from 59.2)

- French Flash Service PMI (Forecast: 53.0, Previous: 50.3 revised from 50.4)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Manufacturing PMI (Forecast: 66.0, Previous: 66.2 revised from 66.4)

- German Flash Services PMI (Forecast: 52.0, Previous: 49.9 revised from 50.1)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.5, Previous: 62.9 revised from 63.3)

- Flash Services PMI (Forecast: 52.5, Previous: 50.5 revised from 50.3)

European Central Bank President Lagarde will be speaking later at 1900 (SGT). During this time, there may be volatility in EUR.

The eurozone Consumer Confidence data (Forecast: -7, Previous: -8) will be released later at 2200 (SGT).

EUR/USDs next support zone is at 1.21500 and the next resistance zone is at 1.23200.

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (21 May 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced up from the key level of 1.41.

The UK flash PMI data will be released later at 1630 (SGT).

- Flash Manufacturing PMI (Forecast: 60.7, Previous: 60.9 revised 60.7)

- Flash Services PMI (Forecast: 62.2, Previous: 61.0 revised 60.1)

Currently, GBP/USD is moving towards the key level of 1.42. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for buying opportunities of GBP/USD if it breaks above the key level of 1.42.

USD/CAD Outlook (21 May 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD rejected the resistance zone of 1.21000.

The Canadian retail sales m/m data will be released later at 2030 (SGT).

- Core Retail Sales m/m (Forecast: 2.3%, Previous: 4.8%)

- Retail Sales m/m (Forecast: 2.3%, Previous: 4.8%)

USD/CADs next support zone is at 1.19000 and the next resistance zone is at 1.21000.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (21 May 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke above the key level of 154.

The UK flash PMI data will be released later at 1630 (SGT).

- Flash Manufacturing PMI (Forecast: 60.7, Previous: 60.9 revised 60.7)

- Flash Services PMI (Forecast: 62.2, Previous: 61.0 revised 60.1)

GBP/JPYs next support zone is at 153.000 and the next resistance zone is at 155.000.

Look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (21 May 2021)

Overall, EUR/JPY is trending upwards.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Manufacturing PMI (Forecast: 58.6, Previous: 58.9 revised from 59.2)

- French Flash Service PMI (Forecast: 53.0, Previous: 50.3 revised from 50.4)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Manufacturing PMI (Forecast: 66.0, Previous: 66.2 revised from 66.4)

- German Flash Services PMI (Forecast: 52.0, Previous: 49.9 revised from 50.1)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.5, Previous: 62.9 revised from 63.3)

- Flash Services PMI (Forecast: 52.5, Previous: 50.5 revised from 50.3)

European Central Bank President Lagarde will be speaking later at 1900 (SGT). During this time, there may be volatility in EUR.

The eurozone Consumer Confidence data (Forecast: -7, Previous: -8) will be released later at 2200 (SGT).

Currently, EUR/JPY is bouncing off the support zone of 132.800 and the next resistance zone is at 134.300.

Look for buying opportunities of EUR/JPY.