Daily Forex Analysis - 14 December 2020

USD Overview (14 December 2020)

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

The PPI m/m data released last Friday indicated a slight increase in the producer prices.

- PPI m/m (Actual: 0.1%, Forecast: 0.1%, Previous: 0.3%)

- Core PPI m/m (Actual: 0.1%, Forecast: 0.2%, Previous: 0.1%)

The Preliminary UoM Consumer Sentiment data (Actual: 81.4, Forecast: 76.1, Previous: 76.9 revised from 77.0) indicated an increase in consumers confidence of the economic conditions in the U.S..

NZD/USD Outlook (14 December 2020)

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

The New Zealand Westpac Consumer Sentiment data (Forecast: NA, Previous: 95.1) will be released tomorrow at 0400 (SGT).

Currently, NZD/USD is testing to break above the key level of 0.71. Its next support zone is at 0.70000 and the next resistance zone is at 0.72000.

Look for buying opportunities of NZD/USD if it breaks above the key level of 0.71.

AUD/USD Outlook (14 December 2020)

Overall, AUD/USD is trending upwards. Recently, AUD/USD has been ranging across.

The Reserve Bank of Australia will be releasing the minutes of the recent monetary policy meeting tomorrow at 0830 (SGT).

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

Look for buying opportunities of AUD/USD.

USD/JPY Outlook (14 December 2020)

Overall, USD/JPY is trending downwards.

Currently, USD/JPY is testing to break below the key level of 104. Its next support zone is at 103.400 and the next resistance zone is at 105.600.

Look for selling opportunities of USD/JPY if it breaks below the key level of 104.

EUR/USD Outlook (14 December 2020)

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

Over the weekend, UK Prime Minister Boris Johnson and European Commission President Ursula von de Leyen agreed to carry on post-Brexit trade talks past the recent Sunday deadline.

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 if it bounces off the resistance zone of 1.21800.

GBP/USD Outlook (14 December 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD gapped up after UK Prime Minister Boris Johnson and European Commission President Ursula von de Leyen agreed to carry on post-Brexit trade talks past the recent Sunday deadline.

Currently, GBP/USD is testing to break below the key level of 1.33. Its 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 if it breaks below the key level of 1.33.

USD/CAD Outlook (14 December 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD bounced off the resistance zone of 1.27900.

Currently, USD/CAD is moving towards the resistance zone of 1.27900 and the next support zone is at 1.25720.

Look for selling opportunities of USD/CAD if it bounces off the resistance zone of 1.27900.

GBP/JPY Outlook (14 December 2020)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY gapped up after UK Prime Minister Boris Johnson and European Commission President Ursula von de Leyen agreed to carry on post-Brexit trade talks past the recent Sunday deadline.

GBP/JPYs next support zone is at 137.500 and the next resistance zone is at 140.000.

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

EUR/JPY Outlook (14 December 2020)

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

Over the weekend, UK Prime Minister Boris Johnson and European Commission President Ursula von de Leyen agreed to carry on post-Brexit trade talks past the recent Sunday deadline.

EUR/JPYs next support zone is at 124.750 and the next resistance zone is at 126.700.

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