Daily Forex Analysis - 8th July 2021

USD Overview (08 July 2021)

Yesterday, USD weakened against most major currencies except GBP and NZD.

In the released minutes earlier today, it was stated that some of the FOMC members were concerned that longer-term inflation expectations may “rise to inappropriate levels if elevated inflation readings persisted”. Some of the members also highlighted that due to the valuation pressures in the housing markets, it might be beneficial to cut back on the Feds mortgage-backed securities earlier than the Treasury bond purchases.

NZD/USD Outlook (08 July 2021)

Overall, NZD/USD is trending downwards.

Currently, NZD/USD is testing to break below 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 selling opportunities of NZD/USD if it breaks below the key level of 0.70.

AUD/USD Outlook (08 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 buying opportunities of AUD/USD it bounces off the support zone of 0.75000.

USD/JPY Outlook (08 July 2021)

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

Earlier today, it was reported that Japan is recommending to declare virus state of emergency in Tokyo from 12 July to 22 August.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

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

EUR/USD Outlook (08 July 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD broke the support zone of 1.18500.

In the released quarterly EU Economic Forecasts yesterday, the European Commission revised the eurozone economic growth forecast for 2021 and 2022 upwards from 4.2% to 4.8% and 4.4% to 4.5% respectively. Inflation for 2021 and 2022 have also been revised upwards from 1.7% to 2.2% and 1.3% to 1.6% respectively.

The European Central Bank will be releasing the minutes for its recent monetary policy meeting later at 1930 (GMT+8).

EUR/USDs next support zone is at 1.16300 and the next resistance zone is at 1.18500.

Look for selling opportunities of EUR/USD.

GBP/USD Outlook (08 July 2021)

Overall, GBP/USD is trending downwards.

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

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

USD/CAD Outlook (08 July 2021)

Overall, USD/CAD is trending upwards.

The Canadian Ivey PMI data (Actual: 71.9, Forecast: 65.0, Previous: 64.7) released yesterday indicated an increase in the pace of expansion in business activities in June.

Currently, USD/CAD is testing the resistance zone of 1.24800 and the next support zone is at 1.22600.

Look for short-term buying opportunities of USD/CAD if it breaks the resistance zone of 1.24800.

GBP/JPY Outlook (08 July 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced down from the key level of 153.

GBP/JPYs next support zone is at 151.000 and the next resistance zone is at 153.800.

Look for short-term selling opportunities of GBP/JPY.

EUR/JPY Outlook (08 July 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY bounced down from the key level of 131.

In the released quarterly EU Economic Forecasts yesterday, the European Commission revised the eurozone economic growth forecast for 2021 and 2022 upwards from 4.2% to 4.8% and 4.4% to 4.5% respectively. Inflation for 2021 and 2022 have also been revised upwards from 1.7% to 2.2% and 1.3% to 1.6% respectively.

The European Central Bank will be releasing the minutes for its recent monetary policy meeting later at 1930 (GMT+8).

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

Look for selling opportunities of EUR/JPY if it breaks the support zone of 130.000.