Daily Forex Analysis - 06 January 2021

USD Overview (06 January 2021)

Yesterday, USD weakened against all major currencies.

The ISM Manufacturing PMI data (Actual: 60.7, Forecast: 56.6, Previous: 57.5) released yesterday indicated a strong increase in the rate of expansion of the manufacturing sector in December.

The ADP Non-Farm Employment Change data (Forecast: 60K, Previous: 307K) will be released later at 2115 (SGT).

The FOMC will be releasing the minutes for the previous monetary policy meeting tomorrow at 0300 (SGT).

NZD/USD Outlook (06 January 2021)

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

NZD/USDs next support zone is at 0.72000 and the next resistance zone is at 0.73700.

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

AUD/USD Outlook (06 January 2021)

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

The Australian Building Approvals m/m data (Forecast: 1.9%, Previous: 3.8%) will be released tomorrow at 0830 (SGT).

AUD/USDs next support zone is at 0.76800 and the next resistance zone is at 0.79100.

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

USD/JPY Outlook (06 January 2021)

Overall, USD/JPY is trending downwards. Recently, USD/JPY broke the support zone of 103.000.

Currently, USD/JPY is moving towards the resistance zone of 103.000 and the next support zone is at 101.250.

Look for selling opportunities of USD/JPY if it bounces off the resistance zone of 103.000.

EUR/USD Outlook (06 January 2021)

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

The Germany Unemployment Change data (Actual: -37K, Forecast: 10K, Previous: -40K revised from -39K) released yesterday indicated a decline in the number of unemployed people in November.

The German Preliminary CPI m/m data (Forecast: 0.6%, Previous: -0.8%) will be released later at 1300 (SGT).

The French Preliminary CPI m/m data (Forecast: 0.4%, Previous: 0.2%) will be released later at 1545 (SGT).

EUR/USDs next support zone is at 1.21800 and the next resistance zone is at 1.24800.

Look for short-term buying opportunities of EUR/USD if it breaks above the key level of 1.23.

GBP/USD Outlook (06 January 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke above the key level of 1.36.

Bank of England Governor Bailey will be testifying about the Financial Stability Report later at 2200 (SGT). During this time, volatility is expected in GBP.

Currently, GBP/USD is testing to break below the key level of 1.36. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for short-term buying opportunities of GBP/USD if it breaks above the key level of 1.36.

USD/CAD Outlook (06 January 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke below the key level of 1.27.

Yesterday, Saudi Arabia announced an extra 1 million barrels-per-day of oil production cut in February and March.

USD/CADs next support zone is at 1.25720 and the next resistance zone is at 1.27900.

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

GBP/JPY Outlook (06 January 2021)

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

Bank of England Governor Bailey will be testifying about the Financial Stability Report later at 2200 (SGT). During this time, volatility is expected in GBP.

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

Look for short-term selling opportunities of GBP/JPY.

EUR/JPY Outlook (06 January 2021)

Overall, EUR/JPY is ranging across.

The Germany Unemployment Change data (Actual: -37K, Forecast: 10K, Previous: -40K revised from -39K) released yesterday indicated a decline in the number of unemployed people in November.

The German Preliminary CPI m/m data (Forecast: 0.6%, Previous: -0.8%) will be released later at 1300 (SGT).

The French Preliminary CPI m/m data (Forecast: 0.4%, Previous: 0.2%) will be released later at 1545 (SGT).

EUR/JPYs next support zone is at 124.750 and the next resistance zone is at 126.800.

Look for short-term selling opportunities of EUR/JPY.