Daily Forex Analysis - 7th July 2021

USD Overview (07 July 2021)

Yesterday, USD strengthened against most major currencies except JPY.

The ISM Services PMI data (Actual: 60.1, Forecast: 63.4, Previous: 64.0) released yesterday indicated a slowdown in the pace of expansion of the services sector.

The Federal Reserve will be releasing the minutes for the previous monetary policy meeting tomorrow at 0200 (GMT+8). More details on the recent hawkishness from the Fed may be indicated in the minutes.

FOMC committee member Bostic will be speaking tomorrow at 0330 (GMT+8). During this time, there may be volatility in USD.

NZD/USD Outlook (07 July 2021)

Overall, NZD/USD is trending downwards. Recently, NZD/USD bounced off the resistance zone of 0.71000.

NZD/USDs next support zone is at 0.69500 and the next resistance zone is at 0.71000.

Look for short-term selling opportunities of NZD/USD if it breaks below the key level of 0.70.

AUD/USD Outlook (07 July 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD trended down into the support zone of 0.75000.

During the monetary policy meeting yesterday, the Reserve Bank of Australia (RBA) held interest rate unchanged at 0.10%. With regards to the bond purchase programme that is ending in early September, the central bank has decided to continue the purchase programme at a reduced rate of $4 billion a week until at least mid-November. The RBA has also acknowledged the stronger than earlier expected economic recovery in Australia. The reduction in bond purchases together with the hawkish tone from the central bank led to the strengthening of AUD.

Currently, AUD/USD is testing the support zone of 0.75000 and the next resistance zone is at 0.76500.

Look for short-term buying opportunities of AUD/USD it bounces off the support zone of 0.75000.

USD/JPY Outlook (07 July 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke the support zone of 110.800.

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

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

EUR/USD Outlook (07 July 2021)

Overall, EUR/USD is trending downwards.

The eurozone and German ZEW Economic Sentiment data released yesterday indicated optimism from the surveyed investors and analysts on the eurozone and German economy remains high although the level has declined from the previous release.

- ZEW Economic Sentiment (Actual: 61.2, Forecast: 79.0, Previous: 81.3)

- German ZEW Economic Sentiment (Actual: 63.3, Forecast: 75.0, Previous: 79.8)

Also, the eurozone Retail Sales m/m data (Actual: 4.6%, Forecast: 4.3%, Previous: -3.1%) released indicated a strong recovery in consumer spending in May.

The quarterly EU Economic Forecasts will be released later at 1700 (GMT+8).

Currently, EUR/USD is testing the support zone of 1.18500 and the next resistance zone is at 1.20000.

Look for short-term selling opportunities of EUR/USD if it breaks the support zone of 1.18500.

GBP/USD Outlook (07 July 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD trended into the support zone of 1.38000.

The UK Construction PMI data (Actual: 66.3, Forecast: 63.9, Previous: 64.2) released yesterday indicated continued expansion of the construction sector at a faster pace.

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 (07 July 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD trended into the resistance zone of 1.24800.

The Canadian Ivey PMI data (Forecast: 65.0, Previous: 64.7) will be released later at 2200 (GMT+8).

Currently, USD/CAD is testing the resistance zone of 1.24800 and the next support zone is at 1.22600.

Look for short-term selling opportunities of USD/CAD if it bounces off the resistance zone of 1.24800.

GBP/JPY Outlook (07 July 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY rejected the resistance zone of 153.800 and broke below the key level of 153.

The UK Construction PMI data (Actual: 66.3, Forecast: 63.9, Previous: 64.2) released yesterday indicated continued expansion of the construction sector at a faster pace.

GBP/JPYs next support zone is at 151.000 and the next resistance zone is at 153.800.

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

EUR/JPY Outlook (07 July 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke below the key level of 131.

The eurozone and German ZEW Economic Sentiment data released yesterday indicated optimism from the surveyed investors and analysts on the eurozone and German economy remains high although the level has declined from the previous release.

- ZEW Economic Sentiment (Actual: 61.2, Forecast: 79.0, Previous: 81.3)

- German ZEW Economic Sentiment (Actual: 63.3, Forecast: 75.0, Previous: 79.8)

Also, the eurozone Retail Sales m/m data (Actual: 4.6%, Forecast: 4.3%, Previous: -3.1%) released indicated a strong recovery in consumer spending in May.

The quarterly EU Economic Forecasts will be released later at 1700 (GMT+8).

EUR/JPYs next support zone is at 130.000 and the next resistance zone is at 132.000.

Look for short-term selling opportunities of EUR/JPY.