Daily Forex Analysis - 23th July 2021

USD Overview (23 July 2021)

Yesterday, USD weakened against most major currencies except EUR and JPY.

The Unemployment Claims data (Actual: 419K, Forecast: 350K, Previous: 360K revised from 360K) released yesterday indicated an increase in the number of people claiming for unemployment benefits last week.

The flash PMI data will be released later at 2145 (GMT+8).

- Flash Manufacturing PMI (Forecast: 62.0, Previous: 62.1 revised from 62.6)

- Flash Services PMI (Forecast: 64.6, Previous: 64.6 revised from 64.8)

NZD/USD Outlook (23 July 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke the resistance zone of 0.69500.

Currently, NZD/USD is moving towards 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 buying opportunities of NZD/USD if it breaks above the key level of 0.70.

AUD/USD Outlook (23 July 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD bounced off the support zone of 0.73300.

The Australian flash PMI data released earlier today indicated a return to the contraction level of the services sector while the manufacturing sector slowed in June due to the renewed COVID restrictions caused by the spread of Delta variant.

- Flash Manufacturing PMI (Actual: 56.8, Forecast: NA, Previous: 58.6 revised from 58.4)

- Flash Services PMI (Actual: 44.2, Forecast: NA, Previous: 56.8 revised from 56.0)

Currently, AUD/USD is testing to break above 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 bounces down from the key level of 0.74.

USD/JPY Outlook (23 July 2021)

Overall, USD/JPY is trending downwards.

Japanese banks will be closed today in observance of Health-Sports Day. Expect lower trading volatility and volume during the usual Japanese market hours.

The Japanese Flash Manufacturing PMI data (Forecast: TBA, Previous: 52.4 revised from 51.3) will be released next Monday at 0830 (GMT+8).

USD/JPYs 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.

EUR/USD Outlook (23 July 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced off the resistance zone of 1.18200.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its monetary policy unchanged. No discussions on quantitative easing were made. With the recent revision in inflation target, the central bank has revised its forward guidance on interest rates, stating its expectation that interest rates will remain at the current or lower levels until inflation is approaching its 2% target in the medium term as well as sustaining for the rest of the ECBs projection horizon.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Manufacturing PMI (Forecast: 58.4, Previous: 59.0 revised from 58.6)

- French Flash Service PMI (Forecast: 58.7, Previous: 57.8 revised from 57.4)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Manufacturing PMI (Forecast: 64.2, Previous: 65.1 revised from 64.9)

- German Flash Services PMI (Forecast: 59.4, Previous: 57.5 revised from 58.1)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.6, Previous: 63.4 revised from 63.1)

- Flash Services PMI (Forecast: 59.4, Previous: 58.3 revised from 58.0)

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

Look for selling opportunities of EUR/USD if it rejects the resistance zone of 1.18200.

GBP/USD Outlook (23 July 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD broke above the key level of 1.37.

The UK Retail Sales m/m data (Forecast: -0.2%, Previous: -1.4%) will be released later at 1400 (GMT+8).

The UK flash PMI data will be released later at 1630 (GMT+8).

- Flash Manufacturing PMI (Forecast: 62.3, Previous: 63.9 revised from 64.2)

- Flash Services PMI (Forecast: 62.1, Previous: 62.4 revised from 61.7)

Currently, GBP/USD is moving towards 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 (23 July 2021)

Overall, USD/CAD is trending upwards.

The Canadian retail sales m/m data will be released later at 2030 (GMT+8).

- Core Retail Sales m/m (Forecast: -1.6%, Previous: -7.2%)

- Retail Sales m/m (Forecast: -3.0%, Previous: -5.7%)

USD/CADs next support zone is at 1.24500 and the next resistance zone is at 1.26100.

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

GBP/JPY Outlook (23 July 2021)

Overall, GBP/JPY is trending downwards. Recently, GBP/JPY broke the resistance zone of 151.000.

The UK Retail Sales m/m data (Forecast: -0.2%, Previous: -1.4%) will be released later at 1400 (GMT+8).

The UK flash PMI data will be released later at 1630 (GMT+8).

- Flash Manufacturing PMI (Forecast: 62.3, Previous: 63.9 revised from 64.2)

- Flash Services PMI (Forecast: 62.1, Previous: 62.4 revised from 61.7)

Currently, GBP/JPY is moving up towards 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 buying opportunities of GBP/JPY if it breaks above the key level of 152.

EUR/JPY Outlook (23 July 2021)

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY rejected the resistance zone of 130.000.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its monetary policy unchanged. No discussions on quantitative easing were made. With the recent revision in inflation target, the central bank has revised its forward guidance on interest rates, stating its expectation that interest rates will remain at the current or lower levels until inflation is approaching its 2% target in the medium term as well as sustaining for the rest of the ECBs projection horizon.

The French flash PMI data will be released later at 1515 (SGT).

- French Flash Manufacturing PMI (Forecast: 58.4, Previous: 59.0 revised from 58.6)

- French Flash Service PMI (Forecast: 58.7, Previous: 57.8 revised from 57.4)

The German Flash PMI data will be released later at 1530 (SGT).

- German Flash Manufacturing PMI (Forecast: 64.2, Previous: 65.1 revised from 64.9)

- German Flash Services PMI (Forecast: 59.4, Previous: 57.5 revised from 58.1)

The eurozone flash PMI data will be released later at 1600 (SGT).

- Flash Manufacturing PMI (Forecast: 62.6, Previous: 63.4 revised from 63.1)

- Flash Services PMI (Forecast: 59.4, Previous: 58.3 revised from 58.0)

Currently, EUR/JPY is moving towards the resistance zone of 130.000 and the next support zone is at 128.500.

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