Daily Forex Analysis - 18 January 2021

USD Overview (18 January 2021)

Last week, USD strengthened against all major currencies.

The Retail Sales m/m data released last Friday indicated the third straight month of decline in consumer spending in December as COVID-19 restrictions were reimposed.

- Core Retail Sales m/m (Actual: -1.4%, Forecast: -0.1%, Previous: -1.3% revised from -0.9%)

- Retail Sales m/m (Actual: -0.7%, Forecast: 0.0%, Previous: -1.4% revised from -1.1%)

The Preliminary UoM Consumer Sentiment data (Actual: 79.2, Forecast: 79.5, Previous: 80.7 revised from 81.4) released last Friday indicated a decline in the sentiment of surveyed consumers on the U.S. economic conditions.

U.S. banks will be closed today in observance of Martin Luther King Day. Expect lower trading volatility and volume during the U.S. market session.

NZD/USD Outlook (18 January 2021)

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

NZD/USDs next support zone is at 0.70100 and the next resistance zone is at 0.72000.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (18 January 2021)

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

Currently, AUD/USD is testing the support zone of 0.76800 and the next resistance zone is at 0.79100.

Look for selling opportunities of AUD/USD if it breaks the support zone of 0.76800.

USD/JPY Outlook (18 January 2021)

Overall, USD/JPY is ranging across.

USD/JPYs next support zone is at 103.000 and the next resistance zone of 104.600.

Look for selling opportunities of USD/JPY.

EUR/USD Outlook (18 January 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD broke below the key level of 1.21 after pharmaceutical company Pfizer said that it will temporarily reduce deliveries of COVID-19 vaccine to Europe while it upgrades production capacity to 2 billion doses per year.

EUR/USDs next support zone is at 1.19800 and the next resistance zone is at 1.21800.

Look for selling opportunities of EUR/USD.

GBP/USD Outlook (18 January 2021)

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

The UK GDP m/m data (Actual: -2.6%, Forecast: -4.6%, Previous: 0.4%) released last Friday indicated a decline in economic growth in November after six months of growth.

Bank of England Governor Bailey will be speaking on climate issues at a webinar at 2130 (SGT).

GBP/USDs next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for selling opportunities of GBP/USD.

USD/CAD Outlook (18 January 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD broke above the key level of 1.27.

The Canadian Housing Starts data (Forecast: TBA, Previous: 246K) will be released later at 2115 (SGT).

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

Look for buying opportunities of USD/CAD if it breaks the resistance zone of 1.27900.

GBP/JPY Outlook (18 January 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 142.200.

The UK GDP m/m data (Actual: -2.6%, Forecast: -4.6%, Previous: 0.4%) released last Friday indicated a decline in economic growth in November after six months of growth.

Bank of England Governor Bailey will be speaking on climate issues at a webinar at 2130 (SGT).

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

Look for short-term selling opportunities of GBP/JPY if it breaks below the key level of 141.

EUR/JPY Outlook (18 January 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke below the key level of 126 after pharmaceutical company Pfizer said that it will temporarily reduce deliveries of COVID-19 vaccine to Europe while it upgrades production capacity to 2 billion doses per year.

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

Look for selling opportunities of EUR/JPY.