Daily Forex Analysis - 04 January 2021

USD Overview (04 January 2021)

Last Thursday, USD strengthened against most major currencies except GBP, AUD and CAD.

Also, the U.S. Trade Representative announced that new tariffs will be imposed on aircraft manufacturing parts, certain non-sparkling wine, cognac and other grape brandies from France and Germany.

The OPEC-JMMC meetings will be held today.

NZD/USD Outlook (04 January 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD trended into the resistance zone of 0.72000.

New Zealand banks will be closed today in observance of the Second New Years Day. Expect lower trading volume and volatility during the New Zealand market session.

NZD/USDs next support zone is at 0.70000 and the next resistance zone is at 0.72000.

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

AUD/USD Outlook (04 January 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD trended into the resistance zone of 0.76800.

Currently, AUD/USD is testing to break above the key level of 0.76. Its next support zone is at 0.73900 and the next resistance zone is at 0.76800.

Look for short-term buying opportunities of AUD/USD.

USD/JPY Outlook (04 January 2021)

Overall, USD/JPY is trending downwards. Recently, USD/JPY trended lower into the support zone of 103.000.

Currently, USD/JPY is testing the next support zone of 103.000 and the next resistance zone is at 104.600.

Look for selling opportunities of USD/JPY if it breaks the support zone of 103.000.

EUR/USD Outlook (04 January 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD bounced down from the key level of 1.23.

Last week, the U.S. Trade Representative announced that new tariffs will be imposed on aircraft manufacturing parts, certain non-sparkling wine, cognac and other grape brandies from France and Germany.

Currently, EUR/USD is bouncing off the support zone of 1.21800 and the next resistance zone is at 1.24800.

Look for short-term buying opportunities of EUR/USD.

GBP/USD Outlook (04 January 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke above the key level of 1.36 amid the optimism sparked by the post-Brexit trade deal.

Last week, the UK Parliament approved the post-Brexit trade deal.

Also, it was reported that COVID-19 second-stage vaccination for the 500,000 people who have received the first vaccine in the UK will be delayed for up to 3 months as the National Health Service prioritizes on providing the first dose to its other citizens.

Currently, GBP/USD is testing to break above the key level of 1.37. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for buying opportunities of GBP/USD.

USD/CAD Outlook (04 January 2021)

Overall, USD/CAD is trending downwards.

Earlier today, OPEC secretary general said that the outlook for oil markets in the first half of 2021 contains plenty of downside risks. The OPEC-JMMC meetings will be held today.

The Canadian Manufacturing PMI data (Forecast: NA, Previous: 55.8) will be released later at 2245 (SGT).

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

Look for short-term buying opportunities of USD/CAD if it bounces off the support zone of 1.27900.

GBP/JPY Outlook (04 January 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced off the support zone of 140.000.

Last week, the UK Parliament approved the post-Brexit trade deal.

Also, it was reported that COVID-19 second-stage vaccination for the 500,000 people who have received the first vaccine in the UK will be delayed for up to 3 months as the National Health Service prioritizes on providing the first dose to its other citizens.

Currently, GBP/JPY is testing to break above the key level of 141. Its next support zone is at 140.000 and the next resistance zone is at 142.200.

Look for buying opportunities of GBP/JPY if it breaks above the key level of 141.

EUR/JPY Outlook (04 January 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY trended into the resistance zone of 126.700.

Last week, the U.S. Trade Representative announced that new tariffs will be imposed on aircraft manufacturing parts, certain non-sparkling wine, cognac and other grape brandies from France and Germany.

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

Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 126.700.