Daily Forex Analysis - 19th May 2021

USD Overview (19 May 2021)

Yesterday, USD weakened against all major currencies.

The U.S. housing data released yesterday indicated a slowdown in the number of residential buildings that began construction in April amid supply-chain constraints.

- Building Permits (Actual: 1.76M, Forecast: 1.77M, Previous: 1.76M revised from 1.77M)

- Housing Starts (Actual: 1.57M, Forecast: 1.71M, Previous: 1.73M revised from 1.74M)

FOMC committee member Bostic will be speaking later at 2335 (SGT). During this time, there may be volatility in USD.

The central bank will be releasing the minutes for the previous monetary policy meeting tomorrow at 0200 (SGT).

NZD/USD Outlook (19 May 2021)

Overall, NZD/USD is ranging across.

The New Zealand Treasury will be releasing their annual budget tomorrow at 1000 (SGT).

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

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

AUD/USD Outlook (19 May 2021)

Overall, AUD/USD is ranging across.

The Australian jobs report will be released tomorrow at 0930 (SGT).

- Employment Change (Forecast: 20.3K, Previous: 70.7K)

- Unemployment Rate (Forecast: 5.6%, Previous: 5.6%)

The Australian Westpac Consumer Sentiment data (Actual: -4.8%, Forecast: NA, Previous: 6.2%) released earlier today indicated a decline in consumers view on the Australian economic conditions. Nonetheless, it is still at the second highest level since April 2010, indicating that optimism is still high.

AUD/USDs next support zone is at 0.77500 and the next resistance zone is at 0.78000.

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

USD/JPY Outlook (19 May 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke below the key level of 109.

The Japanese Preliminary GDP q/q data (Actual: -1.3%, Forecast: -1.1%, Previous: 2.8% revised from 3.0%) released earlier today indicated negative economic growth during the first quarter of 2021.

Currently, USD/JPY is testing to break above the key level of 109. Its next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY if it breaks above the key level of 109.

EUR/USD Outlook (19 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke the resistance zone of 1.21500.

Yesterday, it was reported that Chinese Premier Li Keqiang spoke to Italian Prime Minister Mario Draghi on promoting bilateral ties between China and the European Union.

The eurozone final CPI y/y data will be released later at 1700 (SGT).

- Final CPI y/y (Forecast: 1.6%, Previous: 1.6%)

- Final Core CPI y/y (Forecast: 0.8%, Previous: 0.8%)

EUR/USDs next resistance zone is at 1.23200 and the next support zone is at 1.21500.

Look for buying opportunities of EUR/USD.

GBP/USD Outlook (19 May 2021)

Overall, GBP/USD is trending upwards.

The UK employment data released yesterday indicated further strengthening of the UK jobs market. The number of people claiming for unemployment benefits declined last month while unemployment rate fell slightly.

- Average Earnings Index 3m/y (Actual: 4.0%, Forecast: 4.5%, Previous: 4.5%)

- Claimant Count Change (Actual: -15.1K, Forecast: 25.6K, Previous: -19.4K revised from 10.1K)

- Unemployment Rate (Actual: 4.8%, Forecast: 4.9%, Previous: 4.9%)

The UK CPI y/y data will be released later at 1400 (SGT).

- CPI y/y (Forecast: 1.5%, Previous: 0.7%)

- Core CPI y/y (Forecast: 1.3%, Previous: 1.1%)

Currently, GBP/USD is testing to break above the key level of 1.42. 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 breaks above the key level of 1.42.

USD/CAD Outlook (19 May 2021)

Overall, USD/CAD is trending downwards.

The Canadian CPI m/m data (Forecast: 0.2%, Previous: 0.5%) will be released later at 2030 (SGT).

Currently, USD/CAD is moving towards the resistance zone of 1.21000 and the next support zone is at 1.19000.

Look for selling opportunities of USD/CAD if it bounces off the resistance zone of 1.21000.

GBP/JPY Outlook (19 May 2021)

Overall, GBP/JPY is trending upwards.

The UK employment data released yesterday indicated further strengthening of the UK jobs market. The number of people claiming for unemployment benefits declined last month while unemployment rate fell slightly.

- Average Earnings Index 3m/y (Actual: 4.0%, Forecast: 4.5%, Previous: 4.5%)

- Claimant Count Change (Actual: -15.1K, Forecast: 25.6K, Previous: -19.4K revised from 10.1K)

- Unemployment Rate (Actual: 4.8%, Forecast: 4.9%, Previous: 4.9%)

The UK CPI y/y data will be released later at 1400 (SGT).

- CPI y/y (Forecast: 1.5%, Previous: 0.7%)

- Core CPI y/y (Forecast: 1.3%, Previous: 1.1%)

Currently, GBP/JPY is moving towards the resistance zone of 155.000 and the next support zone is at 153.000.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 155.000.

EUR/JPY Outlook (19 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY broke the resistance zone of 132.800

Yesterday, it was reported that Chinese Premier Li Keqiang spoke to Italian Prime Minister Mario Draghi on promoting bilateral ties between China and the European Union.

The eurozone final CPI y/y data will be released later at 1700 (SGT).

- Final CPI y/y (Forecast: 1.6%, Previous: 1.6%)

- Final Core CPI y/y (Forecast: 0.8%, Previous: 0.8%)

EUR/JPYs next support zone is at 132.800 and the next resistance zone of 134.300.

Look for buying opportunities of EUR/JPY.