Daily Forex Analysis - 24th May 2021

USD Overview (24 May 2021)

Last Friday, USD strengthened against all major currencies.

The flash PMI data released last Friday indicated that business activities have once again expanded at the fastest pace since the start of PMI data collection.

- Flash Manufacturing PMI (Actual: 61.5, Forecast: 60.0, Previous: 60.5 revised from 60.6)

- Flash Services PMI (Actual: 70.1, Forecast: 64.3, Previous: 64.7 revised from 63.1)

FOMC committee member Brainard will be speaking later at 2100 (SGT). Also, committee member Bostic will be speaking tomorrow at 0000 (SGT). During these times, there may be volatility in USD.

NZD/USD Outlook (24 May 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD broke below the key level of 0.72 as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

The New Zealand retail sales q/q data released earlier today indicated a recovery in consumer spending during the first quarter of 2021.

- Retail Sales q/q (Actual: 2.5%, Forecast: TBA, Previous: -2.6% revised from -2.7%)

- Core Retail Sales q/q (Actual: 3.2%, Forecast: TBA, Previous: -2.9% revised from -3.1%)

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

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

AUD/USD Outlook (24 May 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD weakened as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

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

Look for selling opportunities of AUD/USD.

USD/JPY Outlook (24 May 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY bounced off the support zone of 108.500 as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

Bank of Japan (BOJ) Governor Kuroda will be speaking later at 2005 (SGT). During this time, there may be volatility in JPY.

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 (24 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke below the key level of 1.22 as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

The series of eurozone flash PMI data released last Friday was overall positive. Business activities across the eurozone expanded at a faster pace in May with the exception of Germanys manufacturing sector which slows down slightly due to disruptions in supply-chain.

- French Flash Manufacturing PMI (Actual: 59.2, Forecast: 58.6, Previous: 58.9 revised from 59.2)

- French Flash Service PMI (Actual: 56.6, Forecast: 53.0, Previous: 50.3 revised from 50.4)

- German Flash Manufacturing PMI (Actual: 64.0, Forecast: 66.0, Previous: 66.2 revised from 66.4)

- German Flash Services PMI (Actual: 52.8, Forecast: 52.0, Previous: 49.9 revised from 50.1)

- Flash Manufacturing PMI (Actual: 62.8, Forecast: 62.5, Previous: 62.9 revised from 63.3)

- Flash Services PMI (Actual: 55.1, Forecast: 52.5, Previous: 50.5 revised from 50.3)

Also, the eurozone Consumer Confidence data (Actual: -5, Forecast: -7, Previous: -8) released indicated a decrease in the level of pessimism from consumers across the eurozone on its economic conditions.

French and German banks will be closed today in observance of Whit Monday. Expect lower trading volatility and volume during the usual European market hours.

Currently, EUR/USD is moving towards the key level of 1.22. Its next support zone is at 1.21500 and the next resistance zone is at 1.23200.

Look for buying opportunities of EUR/USD if it breaks above the key level of 1.22.

GBP/USD Outlook (24 May 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced down from the key level of 1.42 as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

The UK flash PMI data released last Friday indicated that overall business activities expanded at the fastest rate in more than two decades as a result of looser COVID restrictions.

- Flash Manufacturing PMI (Actual: 66.1, Forecast: 60.7, Previous: 60.9 revised 60.7)

- Flash Services PMI (Actual: 61.8, Forecast: 62.2, Previous: 61.0 revised 60.1)

Bank of England Governor Bailey will be testifying on the Monetary Policy Reports later at 2230 (SGT). During this time, there may be volatility in GBP.

GBP/USDs support zone is at 1.40000 and the next resistance zone is at 1.43500.

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

USD/CAD Outlook (24 May 2021)

Overall, USD/CAD is trending downwards. Recently, USD/CAD trended into the resistance zone of 1.21000 as a result of the strengthening of USD caused by the stellar U.S. PMI data released last Friday.

The Canadian retail sales m/m data released last Friday indicated that consumer spending in March increased at a slower pace amid the tightening of COVID restrictions in some parts of Canada.

- Core Retail Sales m/m (Actual: 4.3%, Forecast: 2.3%, Previous: 5.6% revised from 4.8%)

- Retail Sales m/m (Actual: 3.6%, Forecast: 2.3%, Previous: 5.8% revised from 4.8%)

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

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

GBP/JPY Outlook (24 May 2021)

Overall, GBP/JPY is trending upwards.

The UK flash PMI data released last Friday indicated that overall business activities expanded at the fastest rate in more than two decades as a result of looser COVID restrictions.

- Flash Manufacturing PMI (Actual: 66.1, Forecast: 60.7, Previous: 60.9 revised 60.7)

- Flash Services PMI (Actual: 61.8, Forecast: 62.2, Previous: 61.0 revised 60.1)

Bank of England Governor Bailey will be testifying on the Monetary Policy Reports later at 2230 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/JPY is moving towards the key level of 154. Its next support zone is at 153.000 and the next resistance zone is at 155.000.

Look for buying opportunities of GBP/JPY if it bounces up from the key level of 154.

EUR/JPY Outlook (24 May 2021)

Overall, EUR/JPY is trending upwards.

The series of eurozone flash PMI data released last Friday was overall positive. Business activities across the eurozone expanded at a faster pace in May with the exception of Germanys manufacturing sector which slows down slightly due to disruptions in supply-chain.

- French Flash Manufacturing PMI (Actual: 59.2, Forecast: 58.6, Previous: 58.9 revised from 59.2)

- French Flash Service PMI (Actual: 56.6, Forecast: 53.0, Previous: 50.3 revised from 50.4)

- German Flash Manufacturing PMI (Actual: 64.0, Forecast: 66.0, Previous: 66.2 revised from 66.4)

- German Flash Services PMI (Actual: 52.8, Forecast: 52.0, Previous: 49.9 revised from 50.1)

- Flash Manufacturing PMI (Actual: 62.8, Forecast: 62.5, Previous: 62.9 revised from 63.3)

- Flash Services PMI (Actual: 55.1, Forecast: 52.5, Previous: 50.5 revised from 50.3)

Also, the eurozone Consumer Confidence data (Actual: -5, Forecast: -7, Previous: -8) released indicated a decrease in the level of pessimism from consumers across the eurozone on its economic conditions.

French and German banks will be closed today in observance of Whit Monday. Expect lower trading volatility and volume during the usual European market hours.

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.