Daily Forex Analysis - 15th July 2021

USD Overview (15 July 2021)

Yesterday, USD weakened against all major currencies.

During the first day of his testimony, Federal Reserve Chairman Jerome Powell highlighted that the U.S. labour market is still far from full recovery, thus the economy is far from full recovery in order for the scaling back of the central banks quantitative easing to take place.

Federal Reserve Chairman Jerome Powell will be testifying on the Monetary Policy Report released recently before the Senate Banking Committee later at 2130 (GMT+8). During this time, volatility in USD is expected.

FOMC committee member Evans will be speaking later at 2300 (GMT+8). During this time, there may be volatility in USD.

NZD/USD Outlook (15 July 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced off the support zone of 0.69500 and broke above the key level of 0.70 after the halting of quantitative easing by the Reserve Bank of New Zealand (RBNZ).

During their monetary policy meeting yesterday, the RBNZ held interest rate unchanged while halting its Large Scale Asset Purchase (LSAP) programme by 23 July. Nonetheless, the central bank also highlighted that the LSAP programme “remains an important tool for supporting the efficient functioning of the New Zealand debt market” and will engage it again if necessary.

The New Zealand CPI q/q data (Forecast: 0.7%, Previous: 0.8%) will be released tomorrow at 0645 (GMT+8).

NZD/USDs next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for buying opportunities of NZD/USD.

AUD/USD Outlook (15 July 2021)

Overall, AUD/USD is trending downwards.

The Australian employment data will be released later at 0930 (GMT+8).

- Employment Change (Forecast: 19.7K, Previous: 115.2K)

- Unemployment Rate (Forecast: 5.1%, Previous: 5.1%)

AUD/USDs next support zone is at 0.73300 and the next resistance zone is at 0.75000.

If the Australian employment data release fails to strengthen AUD/USD above the resistance zone of 0.75000, look for short-term selling opportunities of AUD/USD.

USD/JPY Outlook (15 July 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced off the resistance zone of 110.800.

The Bank of Japan (BoJ) will be announcing its monetary policy decision tomorrow at a tentative timing. The central bank is expected to hold its monetary policy unchanged. However, with the sluggish vaccinations in Japan and the recent declaration of state of emergency in Tokyo in order for the Olympics to take place without spectators, the BoJ may express signs of pessimism. Also, the central bank may revise it economic outlook when they release the Outlook Report tomorrow.

A press conference will be held after the announcement. During this time, there may be volatility in JPY.

Currently, USD/JPY is testing to break below the key level of 110. Its next support zone is at 108.500 and the next resistance zone is at 110.800.

If the BoJ sends out a dovish tone and that USD/JPY bounces up from the key level of 110, look for short-term buying opportunities of USD/JPY.

EUR/USD Outlook (15 July 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD moved up into the resistance zone of 1.18200.

Currently, EUR/USD is testing the resistance zone of 1.18200 and the next support zone is at 1.16300.

Look for short-term buying opportunities of EUR/USD if it breaks the resistance zone of 1.18200.

GBP/USD Outlook (15 July 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD bounced down from the key level of 1.39.

The UK CPI y/y data released yesterday indicated a higher-than-expected increase in annual inflation.

- CPI y/y (Actual: 2.5%, Forecast: 2.2%, Previous: 2.1%)

- Core CPI y/y (Actual: 2.3%, Forecast: 2.0%, Previous: 2.0%)

The UK employment data will be released later at 1400 (GMT+8).

- Average Earnings Index 3m/y (Forecast: 7.1%, Previous: 5.6%)

- Claimant Count Change (Forecast: -32.5K, Previous: -92.6K)

- Unemployment Rate (Forecast: 4.7%, Previous: 4.7%)

Bank of England committee member Saunders will be speaking later at 1800 (GMT+8). During this time, 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 buying opportunities of GBP/USD if it bounces off the support zone of 1.38000.

USD/CAD Outlook (15 July 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD bounced off the support zone of 1.24800.

During their monetary policy meeting yesterday, the Bank of Canada (BoC) held interest rate unchanged at 0.25% and tapered its quantitative easing (QE) from the previous pace of $3 billion per week to $2 billion per week. The central bank also highlighted that any further adjustments of QE will depend on the strength and durability of the economic recovery. The BoC has revised its GDP projection slightly lower than Aprils projection due to the third wave of the virus which slowed growth in the second quarter. As the result, USD/CAD weakened for a short period of time before recovering after failing to break the support zone of 1.24800.

USD/CADs next support zone is at 1.24800 and the next resistance zone is at 1.26100.

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

GBP/JPY Outlook (15 July 2021)

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

The UK CPI y/y data released yesterday indicated a higher-than-expected increase in annual inflation.

- CPI y/y (Actual: 2.5%, Forecast: 2.2%, Previous: 2.1%)

- Core CPI y/y (Actual: 2.3%, Forecast: 2.0%, Previous: 2.0%)

Currently, GBP/JPY is testing to break below the key level of 152. Its 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 if it breaks below the key level of 152.

EUR/JPY Outlook (15 July 2021)

Overall, EUR/JPY is trending downwards.

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

Look for short-term buying opportunities of EUR/JPY if it bounces off the support zone of 130.000.