Daily Forex Analysis - 10 December 2020

USD Overview (10 December 2020)

Yesterday, USD strengthened against most major currencies except GBP and AUD.

The CPI m/m data will be released later at 2130 (SGT).

- CPI m/m (Forecast: 0.1%, Previous: 0.0%)

- Core CPI m/m (Forecast: 0.1%, Previous: 0.0%)

NZD/USD Outlook (10 December 2020)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced down from the key level of 0.71.

Currently, NZD/USD is testing the support zone of 0.70000 and the next resistance zone is at 0.72000.

Look for buying opportunities of NZD/USD if it bounces off from the support zone of 0.70000.

AUD/USD Outlook (10 December 2020)

Overall, AUD/USD is trending upwards.

The Australian Westpac Consumer Sentiment data (Actual: 4.1%, Forecast: NA, Previous: 2.5%) released earlier today indicated continued increase in consumers confidence of the Australian economic conditions. The index has rose to a ten year high since October 2010.

AUD/USDs next support zone is at 0.73900 and the next resistance zone is at 0.76800.

Given the optimism of the Australian economy indicated by the recent release of the consumer sentiment data, look for buying opportunities of AUD/USD.

USD/JPY Outlook (10 December 2020)

Overall, USD/JPY is ranging across.

USD/JPYs next support zone is at 103.400 and the next resistance zone is at 105.600.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (10 December 2020)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke below the key level of 1.21.

Today is the first day of the EU Economic Summit. Volatility in EUR is expected as topics on COVID-19 and Brexit may be covered during the summit.

The European Central Bank (ECB) will be announcing their monetary policy decision later at 2045 (SGT). It is expected that the central bank will be carrying out more monetary policy easing through the expansion of its stimulus program while interest rate is expected to remain unchanged.

The ECB will also be holding a press conference at 2130 (SGT). During this time, volatility in the EUR is expected.

Currently, EUR/USD is moving towards the resistance zone of 1.21800 and the next support zone is at 1.19800.

With the ongoing negotiation of the post-Brexit trade deal, look for short-term selling opportunities of EUR/USD.

GBP/USD Outlook (10 December 2020)

Overall, GBP/USD is trending upwards. Recently, GBP/USD rejected the resistance zone of 1.34600 and broke below the key level of 1.34.

Yesterday, UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have agreed to extend the deadline of trade talks to this Sunday.

The UK GDP m/m data (Forecast: 0.4%, Previous: 1.1%) will be released later at 1500 (SGT).

GBP/USDs next support zone is at 1.32200 and the next resistance zone is at 1.34600.

With the ongoing negotiation of the post-Brexit trade deal, look for short-term selling opportunities of GBP/USD.

USD/CAD Outlook (10 December 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD has been ranging across.

During the monetary policy meeting yesterday, the Bank of Canada (BoC) held its monetary policy unchanged.

Currently, USD/CAD is testing the support zone of 1.27900 and the next resistance zone is at 1.29800.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.27900.

GBP/JPY Outlook (10 December 2020)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY rejected the resistance zone of 140.000.

Yesterday, UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have agreed to extend the deadline of trade talks to this Sunday.

The UK GDP m/m data (Forecast: 0.4%, Previous: 1.1%) will be released later at 1500 (SGT).

Currently, GBP/JPY is moving towards the resistance zone of 140.000 and the next support zone is at 137.500.

With the ongoing negotiation of the post-Brexit trade deal, look for short-term selling opportunities of GBP/JPY.

EUR/JPY Outlook (10 December 2020)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced off the resistance zone of 126.700.

Today is the first day of the EU Economic Summit. Volatility in EUR is expected as topics on COVID-19 and Brexit may be covered during the summit.

The European Central Bank (ECB) will be announcing their monetary policy decision later at 2045 (SGT). It is expected that the central bank will be carrying out more monetary policy easing through the expansion of its stimulus program while interest rate is expected to remain unchanged.

The ECB will also be holding a press conference at 2130 (SGT). During this time, volatility in the EUR is expected.

Currently, EUR/JPY is moving towards the resistance zone of 126.700 and the next support zone is at 124.750.

With the ongoing negotiation of the post-Brexit trade deal, look for short-term selling opportunities of EUR/JPY.