Daily Forex Analysis - 20th May 2021

USD Overview (20 May 2021)

Yesterday, USD strengthened against all major currencies as it received boosting from the released FOMC meeting minutes. In the minutes, several FOMC committee members felt that holding discussions on the adjustment of the pace of quantitative easing is appropriate in the upcoming meetings if the U.S. economy continues to make speedy progress towards the central banks goals.

The Unemployment Claims data (Forecast: 453K, Previous: 473K) will be released later at 2030 (SGT).

NZD/USD Outlook (20 May 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD trended lower and broke below the key level of 0.72 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

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

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (20 May 2021)

Overall, AUD/USD is ranging across.

The Australian jobs report released earlier today indicated a decline in the number of jobs while unemployment rate declined slightly in April.

- Employment Change (Actual: -30.6K, Forecast: 20.3K, Previous: 77.0K revised from 70.7K)

- Unemployment Rate (Actual: 5.5%, Forecast: 5.6%, Previous: 5.7% revised from 5.6%)

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

- Flash Manufacturing PMI (Forecast: NA, Previous: 59.7 revised from 59.6)

- Flash Services PMI (Forecast: NA, Previous: 58.8 revised from 58.6)

Also, the Australian Retail Sale m/m data (Forecast: 0.5%, Previous: 1.3%) will be released tomorrow at 0930 (SGT).

AUD/USDs next support zone is at 0.75500 and the next resistance zone is at 0.78000.

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

USD/JPY Outlook (20 May 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke above the key level of 109 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (20 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke below the key level of 1.22 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

The eurozone final CPI y/y data released yesterday indicated little changed in the eurozone annual inflation data from its preliminary release.

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

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

European Central Bank President Lagarde will be speaking later at 2000 (SGT). During this time, there may be volatility in EUR.

Currently, EUR/USD is moving towards the support zone of 1.21500 and the next resistance zone is at 1.23200.

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

GBP/USD Outlook (20 May 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced down from the key level of 1.42 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

The UK CPI y/y data released yesterday indicated that annual inflation in the UK rose in April as forecasted.

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

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

Bank of England committee member Cunliffe will be speaking later at 1705 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/USD is testing to break below the key level of 1.41. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for short-term selling opportunities of GBP/USD if it breaks below the key level of 1.41.

USD/CAD Outlook (20 May 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD trended into the resistance zone of 1.21000 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

The Canadian CPI m/m data (Actual: 0.5%, Forecast: 0.2%, Previous: 0.5%) released yesterday indicated that inflation in April continued to rise at the same pace as in March.

Bank of Canada Governor Tiff Macklem will be speaking later at 2300 (SGT). During this time, there may be volatility in CAD.

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

Look for short-term buying opportunities of USD/CAD if it breaks the resistance zone of 1.21000.

GBP/JPY Outlook (20 May 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 155.000.

The UK CPI y/y data released yesterday indicated that annual inflation in the UK rose in April as forecasted.

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

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

Bank of England committee member Cunliffe will be speaking later at 1705 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/JPY is testing to break below the key level of 154. Its next support zone is at 153.000 and the next resistance zone is at 155.000.

Look for selling opportunities of GBP/JPY if it breaks below the key level of 154.

EUR/JPY Outlook (20 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY trended down into the support zone of 132.800.

The eurozone final CPI y/y data released yesterday indicated little changed in the eurozone annual inflation data from its preliminary release.

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

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

European Central Bank President Lagarde will be speaking later at 2000 (SGT). During this time, there may be volatility in EUR.

Currently, EUR/JPY is testing the support zone of 132.800 and the next resistance zone is at 134.300.

Look for buying opportunities of EUR/JPY if it bounces off the support zone of 132.800.