Daily Forex Analysis - 1st July 2021

USD Overview (01 July 2021)

Yesterday, USD strengthened against all major currencies.

The ADP Non-Farm Employment Change data (Actual: 692K, Forecast: 555K, Previous: 886K revised from 978K) released yesterday reported higher than expected increase in jobs during June with the hospitality sector being the main driver of the increase.

The ISM Manufacturing PMI data (Forecast: 61.0, Previous: 61.2) will be released later at 2200 (GMT+8).

NZD/USD Outlook (01 July 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USD broke below the key level of 0.70.

The New Zealand Building Consents m/m data (Actual: -2.8%, Forecast: NA, Previous: 5.1% revised from 4.8%) released earlier today indicated a decline in the number of building permits being issued in May.

Currently, NZD/USD is testing to break above the key level of 0.70. Its next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for short-term buying opportunities of NZD/USD if it breaks above the key level of 0.70.

AUD/USD Outlook (01 July 2021)

Overall, AUD/USD is trending downwards.

Currently, AUD/USD is testing the support zone of 0.75000 and the next resistance zone is at 0.76500.

Look for short-term selling opportunities of AUD/USD if it breaks the support zone of 0.75000.

USD/JPY Outlook (01 July 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke the resistance zone of 110.800.

USD/JPYs next support zone is at 110.800 and the next resistance zone is at 112.000.

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

EUR/USD Outlook (01 July 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced down from the key level of 1.19.

The eurozone CPI flash estimate y/y data released yesterday indicated a slight decline in annual inflation in June.

- CPI Flash Estimate y/y (Actual: 1.9%, Forecast: 1.9%, Previous: 2.0%)

- Core CPI Flash Estimate y/y (Actual: 0.9%, Forecast: 0.9%, Previous: 1.0%)

European Central Bank President Lagarde will be speaking later at 1500 (GMT+8). During this time, there may be volatility in euro.

Currently, EUR/USD is testing the support zone of 1.18500 and the next resistance zone is at 1.20000.

Look for short-term selling opportunities of EUR/USD if it breaks the support zone of 1.18500.

GBP/USD Outlook (01 July 2021)

Overall, GBP/USD is trending downwards.

Bank of England Governor Bailey will be speaking later at 1600 (GMT+8) and 1700 (GMT+8). During these times, there may be volatility in GBP.

Currently, GBP/USD is moving towards the support zone of 1.38000 and the next resistance zone is at 1.40000.

Look for short-term selling opportunities of GBP/USD if it breaks the support zone of 1.38000.

USD/CAD Outlook (01 July 2021)

Overall, USD/CAD is trending upwards.

The Canadian GDP m/m data (Actual: -0.3%, Forecast: -0.8%, Previous: 1.3% revised from 1.1%) released yesterday indicated a decline in economic growth in April due to the reinstatement of lockdown measures in an attempt to curb the third wave of COVID-19.

OPEC+ meetings will be held today. During this time, there may be volatility in CAD.

Canadian banks will be closed today in observance of Canada Day. Expect lower trading volatility and volume during the usual Canadian market hours.

Currently, USD/CAD is testing to break above the key level of 1.24. Its next support zone is at 1.22600 and the next resistance zone is at 1.24800.

Look for short-term buying opportunities of USD/CAD if it breaks above the key level of 1.24.

GBP/JPY Outlook (01 July 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY trended into the resistance zone of 153.800.

Bank of England Governor Bailey will be speaking later at 1600 (GMT+8) and 1700 (GMT+8). During these times, there may be volatility in GBP.

Currently, GBP/JPY is testing the resistance zone of 153.800 and the next support zone is at 151.000.

Look for short-term buying opportunities of GBP/JPY if it breaks the resistance zone of 153.800.

EUR/JPY Outlook (01 July 2021)

Overall, EUR/JPY is ranging across.

The eurozone CPI flash estimate y/y data released yesterday indicated a slight decline in annual inflation in June.

- CPI Flash Estimate y/y (Actual: 1.9%, Forecast: 1.9%, Previous: 2.0%)

- Core CPI Flash Estimate y/y (Actual: 0.9%, Forecast: 0.9%, Previous: 1.0%)

European Central Bank President Lagarde will be speaking later at 1500 (GMT+8). During this time, there may be volatility in euro.

Currently, EUR/JPY is moving towards the resistance zone of 132.000 and the next support zone is at 130.000.

Look for selling opportunities of EUR/JPY if it bounces off the resistance zone of 132.000.