Daily Forex Analysis - 5th July 2021

USD Overview (05 July 2021)

Last Friday, USD weakened against all major currencies.

The U.S. jobs report released last Friday indicated a higher-than-expected job gains in June. At the moment, the jobs market is still around 6.4 million jobs away from its pre-pandemic level. Unemployment rate rose slightly as a result of more people leaving their jobs involuntarily and that there is a rise in the number of job seekers.

- Average Hourly Earnings m/m (Actual: 0.3%, Forecast: 0.4%, Previous: 0.4% revised from 0.5%)

- Non-Farm Employment Change (Actual: 850K, Forecast: 700K, Previous: 583K revised from 559K)

- Unemployment Rate (Actual: 5.9%, Forecast: 5.6%, Previous: 5.8%)

U.S. banks will be closed today in observance of Independence Day. Expect lower than usual trading volatility and volume.

NZD/USD Outlook (05 July 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USD bounced off the support zone of 0.69500 and broke above the key level of 0.70.

NZD/USDs 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.

AUD/USD Outlook (05 July 2021)

Overall, AUD/USD is trending downwards.

The Australian Retail Sales m/m data (Forecast: TBA, Previous: 0.1%) will be released later at 0930 (GMT+8).

Also, the Australian Building Approvals m/m (Forecast: TBA, Previous: -8.6%) will be released at the same time.

Currently, AUD/USD is testing the resistance zone of 0.75000 and the next support zone is at 0.73300.

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

USD/JPY Outlook (05 July 2021)

Overall, USD/JPY is trending upwards.

Currently, USD/JPY is bouncing off the support zone of 110.800 and the next resistance zone is at 112.000.

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

EUR/USD Outlook (05 July 2021)

Overall, EUR/USD is trending downwards.

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 (05 July 2021)

Overall, GBP/USD is trending downwards.

Currently, GBP/USD is testing the resistance zone of 1.38000 and the next support zone is at 1.36000.

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

USD/CAD Outlook (05 July 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD broke below the key level of 1.24.

The Canadian Manufacturing PMI data (Actual: 56.5, Forecast: 57.4, Previous: 57.0) released last Friday indicated continued expansion of the manufacturing sector albeit at a slower pace.

OPEC+ meetings had been postponed to today. During this time, there may be volatility in CAD.

USD/CADs 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.

GBP/JPY Outlook (05 July 2021)

Overall, GBP/JPY is ranging across.

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 (05 July 2021)

Overall, EUR/JPY is ranging across.

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

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