Daily Forex Analysis - 22 April 2021

USD Overview (22 April 2021)

Yesterday, USD weakened against most major currencies except GBP and CHF.

The U.S. Unemployment Claims data (Forecast: 607K, Previous: 576K) will be released later at 2030 (SGT).

NZD/USD Outlook (22 April 2021)

Overall, NZD/USD is trending upwards.

Currently, NZD/USD is testing to break above the key level of 0.72. Its next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for buying opportunities of NZD/USD if it breaks above the key level of 0.72.

AUD/USD Outlook (22 April 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD bounced up from the key level of 0.77.

The Australian flash PMI data will be released tomorrow at 0700 (SGT).

- Flash Manufacturing PMI (Forecast: NA, Previous: 56.8 revised from 57.0)

- Flash Services PMI (Forecast: NA, Previous: 55.5 revised from 56.2)

Currently, AUD/USD is moving towards the resistance zone of 0.78000 and the next support zone is at 0.75500.

Look for buying opportunities of AUD/USD if it breaks the resistance zone of 0.78000.

USD/JPY Outlook (22 April 2021)

Overall, USD/JPY is ranging across.

The Japanese Flash Manufacturing PMI data (Forecast: 53.1, Previous: 52.7 revised from 52.0) will be released tomorrow at 0830 (SGT).

Currently, USD/JPY is testing to break below the key level of 108. Its next support zone is at 106.000 and the next resistance zone is at 108.500.

Look for selling opportunities of USD/JPY if it breaks below the key level of 108.

EUR/USD Outlook (22 April 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD bounced up from the key level of 1.20.

The European Central Bank (ECB) will be announcing their monetary policy decision later at 1945 (SGT). It is expected that the central bank will be holding its monetary policy unchanged. Nonetheless, the ECB is likely going to highlight that economic recovery in the eurozone is well underway as shown in the recent releases of economic data. However, the central bank may warn that the recovery will still be subjected to the progress of the vaccination programme in the eurozone.

The ECB will also be holding a press conference at 2030 (SGT).

During this time, volatility is expected in EUR.

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for short-term buying opportunities of EUR/USD up until the monetary policy announcement.

GBP/USD Outlook (22 April 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced up from the key level of 1.39.

The UK CPI data released yesterday an increase in annual inflation.

- CPI y/y (Actual: 0.7%, Forecast: 0.8%, Previous: 0.4%)

- Core CPI y/y (Actual: 1.1%, Forecast: 1.1%, Previous: 0.9%)

GBP/USDs next support zone is at 1.38000 and the next resistance zone is at 1.40000.

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

USD/CAD Outlook (22 April 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD rejected the resistance zone of 1.26100 after the Bank of Canada (BoC) announced its monetary policy decision.

The central bank held interest rate unchanged at 0.25% while reducing its weekly asset purchases from $4 billion to $3 billion as the Canadian economy has been recovering faster than expected. Nonetheless, the BoC warned that the recent lockdowns in parts of Canada may have an impact on the economy. The central bank also highlighted that interest rates will be held unchanged until the 2% inflation target is sustainably achieved which it expects to happen in the second half of 2022.

The Canadian CPI m/m data (Actual: 0.5%, Forecast: 0.6%, Previous: 0.5%) released yesterday indicated no change in inflation in March.

USD/CADs next support zone is at 1.23800 and the next resistance zone is at 1.26100.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (22 April 2021)

Overall, GBP/JPY is ranging across.

The UK CPI data released yesterday an increase in annual inflation.

- CPI y/y (Actual: 0.7%, Forecast: 0.8%, Previous: 0.4%)

- Core CPI y/y (Actual: 1.1%, Forecast: 1.1%, Previous: 0.9%)

The Japanese Flash Manufacturing PMI data (Forecast: 53.1, Previous: 52.7 revised from 52.0) will be released tomorrow at 0830 (SGT).

GBP/JPYs next support zone is at 148.900 and the next resistance zone is at 151.000.

Look for selling opportunities of GBP/JPY.

EUR/JPY Outlook (22 April 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke below the key level of 130.

The European Central Bank (ECB) will be announcing their monetary policy decision later at 1945 (SGT). It is expected that the central bank will be holding its monetary policy unchanged. Nonetheless, the ECB is likely going to highlight that economic recovery in the eurozone is well underway as shown in the recent releases of economic data. However, the central bank may warn that the recovery will still be subjected to the progress of the vaccination programme in the eurozone.

The ECB will also be holding a press conference at 2030 (SGT).

During this time, volatility is expected in EUR.

The Japanese Flash Manufacturing PMI data (Forecast: 53.1, Previous: 52.7 revised from 52.0) will be released tomorrow at 0830 (SGT).

Currently, EUR/JPY is testing to break above the key level of 130. Its next support zone is at 128.500 and the next resistance zone is at 130.800.

Look for selling opportunities of EUR/JPY if it bounces down from the key level of 130.