Daily Forex Analysis - 20th August 2021

USD Overview (20 August 2021)

Yesterday, USD strengthened against most major currencies except JPY.

The Unemployment Claims data (Actual: 348K, Forecast: 362K, Previous: 377K revised from 375K) released yesterday indicated a decline in the number of people claiming for unemployment benefits last week.

NZD/USD Outlook (20 August 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USD continued to weakened due to the expectation that the U.S. Federal Reserve will be tapering quantitative easing this year.

NZD/USDs next support zone is at 0.67900 and the next resistance zone is at 0.69500.

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

AUD/USD Outlook (20 August 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD continued to weakened due to the expectation that the U.S. Federal Reserve will be tapering quantitative easing this year. Also, the recent news that China is cutting back on steel production is having a negative impact of AUD.

The Australian employment data released yesterday indicated a slowdown in the growth of the job market in July while unemployment continued to decline.

- Employment Change (Actual: 2.2K, Forecast: -46.0K, Previous: 29.1K)

- Unemployment Rate (Actual: 4.6%, Forecast: 5.0%, Previous: 4.9%)

The Australian Flash PMI data will be released next Monday at 0700 (GMT+8).

- Flash Manufacturing PMI (Forecast: NA, Previous: 56.9 revised from 56.8)

- Flash Services PMI (Forecast: NA, Previous: 44.2)

Currently, AUD/USD is testing the support zone of 0.72200 and the next resistance zone is at 0.73300.

Look for short-term selling opportunities of AUD/USD if it breaks the support zone of 0.72200.

USD/JPY Outlook (20 August 2021)

Overall, USD/JPY is ranging across.

The Japanese Flash Manufacturing PMI data (Forecast: TBA, Previous: 53.0 revised from 52.2) will be released next Monday at 0830 (GMT+8).

Currently, USD/JPY is moving up towards 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 breaks above the key level of 110.800.

EUR/USD Outlook (20 August 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD continued to weakened due to the expectation that the U.S. Federal Reserve will be tapering quantitative easing this year. As a result, it broke below the key level of 1.17.

Currently, EUR/USD is moving up towards the key level of 1.17. Its next support zone is at 1.16300 and the next resistance zone is at 1.17600.

Look for short-term selling opportunities of EUR/USD if it bounces down from the key level of 1.17.

GBP/USD Outlook (20 August 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD continued to weakened due to the expectation that the U.S. Federal Reserve will be tapering quantitative easing this year. As a result, it broke below the key level of 1.37.

The UK Retail Sales m/m data (Forecast: 0.2%, Previous: 0.5%) will be released later at 1400 (GMT+8).

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

Look for short-term selling opportunities of GBP/USD if it breaks the support zone of 1.36000.

USD/CAD Outlook (20 August 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD continued to strengthened due to the expectation that the U.S. Federal Reserve will be tapering quantitative easing this year. As a result, it broke above the key level of 1.27.

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

- Core Retail Sales m/m (Forecast: 4.5%, Previous: -2.0%)

- Retail Sales m/m (Forecast: 4.4%, Previous: -2.1%)

Currently, USD/CAD is moving towards the resistance zone of 1.28500 and the next support zone is at 1.26100.

Look for short-term buying opportunities of USD/CAD if it breaks the resistance zone of 1.28500.

GBP/JPY Outlook (20 August 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY rejected the resistance zone of 151.000 and broke below the key level of 150.

The UK Retail Sales m/m data (Forecast: 0.2%, Previous: 0.5%) will be released later at 1400 (GMT+8).

Currently, GBP/JPY is moving up to the key level of 150. Its next support zone is at 148.900 and the next resistance zone is at 151.000.

Look for short-term selling opportunities of GBP/JPY if it bounces down from the key level of 150.

EUR/JPY Outlook (20 August 2021)

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY rejected the resistance zone of 128.500.

Currently, EUR/JPY is moving towards the resistance zone of 128.500 and the next support zone is at 127.150.

Look for short-term selling opportunities of EUR/JPY if it bounces off the resistance zone of 128.500.