Daily Forex Analysis - 12th May 2021

USD Overview (12 May 2021)

Yesterday, USD weakened against most major currencies except CAD.

The CPI m/m data will be released later at 2030 (SGT).

- CPI m/m (Forecast: 0.2%, Previous: 0.6%)

- Core CPI m/m (Forecast: 0.3%, Previous: 0.3%)

FOMC member Clarida will be speaking later at 2100 (SGT) while Bostic will be speaking tomorrow at 0100 (SGT). During this period, there may be volatility in USD.

NZD/USD Outlook (12 May 2021)

Overall, NZD/USD is trending upwards.

Currently, NZD/USD is bouncing off the resistance zone of 0.72850 and the next support zone is at 0.71000.

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

AUD/USD Outlook (12 May 2021)

Overall, AUD/USD is trending upwards.

The Australian Melbourne Institute Inflation Expectation data (Forecast: NA, Previous: 3.2%) will be released tomorrow at 0900 (SGT).

Currently, AUD/USD is moving towards the support zone of 0.78000 and the next resistance zone is at 0.80000.

Look for buying opportunities of AUD/USD if it bounces off the support zone of 0.78000.

USD/JPY Outlook (12 May 2021)

Overall, USD/JPY is ranging across.

Currently, USD/JPY is bouncing off the support zone of 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (12 May 2021)

Overall, EUR/USD is trending upwards.

The eurozone and German ZEW economic sentiment data released yesterday indicated a strong improvement in the economic outlook of Germany and the eurozone amid the slowing down of the third wave of the pandemic in the eurozone.

- Eurozone ZEW Economic Sentiment (Actual: 84.0, Forecast: 68.0, Previous: 66.3)

- German ZEW Economic Sentiment (Actual: 84.4, Forecast: 72.0, Previous: 70.7)

The EU economic forecasts will be released later at 1700 (SGT).

Currently, EUR/USD is testing the resistance zone of 1.21500 and the next support zone is at 1.19700.

Look for short-term selling opportunities of EUR/USD if it rejects the resistance zone of 1.21500.

GBP/USD Outlook (12 May 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD bounced up from the key level of 1.40.

The UK Preliminary GDP q/q data (Forecast: -1.6%, Previous: 1.3% revised from 1.0%) will be released later at 1400 (SGT).

Bank of England Governor Bailey will be speaking later at 1700 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/USD is moving towards the key level of 1.40. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for buying opportunities of GBP/USD if it bounces up from the key level of 1.40.

USD/CAD Outlook (12 May 2021)

Overall, USD/CAD is trending downwards.

Currently, USD/CAD is testing the support zone of 1.21000 and the next resistance zone is at 1.22400.

Look for selling opportunities of USD/CAD if it breaks the support zone of 1.21000.

GBP/JPY Outlook (12 May 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 153.000.

The UK Preliminary GDP q/q data (Forecast: -1.6%, Previous: 1.3% revised from 1.0%) will be released later at 1400 (SGT).

Bank of England Governor Bailey will be speaking later at 1700 (SGT). During this time, there may be volatility in GBP.

GBP/JPYs support zone is at 153.000 and the next resistance zone is at 155.000.

Look for buying opportunities of GBP/JPY.

EUR/JPY Outlook (12 May 2021)

Overall, EUR/JPY is trending upwards.

The eurozone and German ZEW economic sentiment data released yesterday indicated a strong improvement in the economic outlook of Germany and the eurozone amid the slowing down of the third wave of the pandemic in the eurozone.

- Eurozone ZEW Economic Sentiment (Actual: 84.0, Forecast: 68.0, Previous: 66.3)

- German ZEW Economic Sentiment (Actual: 84.4, Forecast: 72.0, Previous: 70.7)

The EU economic forecasts will be released later at 1700 (SGT).

Currently, EUR/JPY is testing to break below the key level of 132. Its next support zone is at 130.800 and the next resistance zone is at 132.800.

Look for buying opportunities of EUR/JPY if it bounces up from the key level of 132.