Daily Forex Analysis - 19th July 2021

USD Overview (19 July 2021)

Last Friday, USD strengthened against most major currencies except NZD.

The Retail Sales m/m data will be released last Friday indicated a stronger than expected increase in consumer spending in June.

- Core Retail Sales m/m (Actual: 1.3%, Forecast: 0.4%, Previous: -0.9% revised from -0.7%)

- Retail Sales m/m (Actual: 0.6%, Forecast: -0.4%, Previous: -1.7% revised from -1.3%)

The Preliminary UoM Consumer Sentiment data (Actual: 80.8, Forecast: 86.5, Previous: 85.5 revised from 86.4) released last Friday indicated a decline in the surveyed consumers level of optimism on the U.S. economic conditions due to less favorable prospects for the economy.

NZD/USD Outlook (19 July 2021)

Overall, NZD/USD is ranging across.

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 (19 July 2021)

Overall, AUD/USD is trending downwards.

The Reserve Bank of Australia will be releasing the minutes for the recent monetary policy meeting tomorrow at 0930 (GMT+8). Details on the recent tapering of quantitative easing may be provided in the minutes.

Currently, AUD/USD is testing to break below the key level of 0.74. Its next support zone is at 0.73300 and the next resistance zone is at 0.75000.

Look for short-term selling opportunities of AUD/USD if it breaks below the key level of 0.74.

USD/JPY Outlook (19 July 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY broke above the key level of 110.

The Japanese National Core CPI y/y data (Forecast: 0.2%, Previous: 0.1%) will be released tomorrow at 0730 (GMT+8).

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.

Look for short-term buying opportunities of USD/JPY if it bounces up from the key level of 110.

EUR/USD Outlook (19 July 2021)

Overall, EUR/USD is trending downwards.

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

Look for short-term selling opportunities of EUR/USD if it bounces off the resistance zone of 1.18200.

GBP/USD Outlook (19 July 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the support zone of 1.38000.

Bank of England committee member Haskel will be speaking later at 1800 (GMT+8). During this time, there may be volatility in GBP.

GBP/USDs next support zone is at 1.36000 and the next resistance zone is at 1.38000.

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

USD/CAD Outlook (19 July 2021)

Overall, USD/CAD is trending upwards.

The Canadian Housing Starts data (Actual: 282K, Forecast: 269K, Previous: 276) released last Friday indicated continued increase in the number of residential buildings that began construction in June.

OPEC+ meeting was resumed over the weekend. In the agreed deal, the group will be increasing oil production on a monthly basis by 400,000 barrels-per-day starting from August. Also, the OPEC+ intends to phase out 5.8 million bpd of oil production cuts by September 2022. The agreement also sees the increase of production baseline for five members, namely the UAE, Saudi Arabia, Iraq, Kuwait and Russia.

Currently, USD/CAD is testing the resistance zone of 1.26100 and the next support zone is at 1.24800.

Look for short-term buying opportunities of USD/CAD if it breaks the resistance zone of 1.26100.

GBP/JPY Outlook (19 July 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced broke below the key level of 152.

Bank of England committee member Haskel will be speaking later at 1800 (GMT+8). During this time, there may be volatility in GBP.

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

Look for short-term buying opportunities of GBP/JPY if it bounces off the support zone of 151.000.

EUR/JPY Outlook (19 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.