Daily Forex Analysis - 22th July 2021

USD Overview (22 July 2021)

Yesterday, USD weakened against most major currencies except JPY.

The Unemployment Claims data (Forecast: 350K, Previous: 360K) will be released later at 2030 (GMT+8).

NZD/USD Outlook (22 July 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD trended up into the resistance zone of 0.69500.

Currently, NZD/USD is testing the resistance zone of 0.69500 and the next support zone is at 0.67900.

Look for selling opportunities of NZD/USD if it rejects the resistance zone of 0.69500.

AUD/USD Outlook (22 July 2021)

Overall, AUD/USD is trending downwards.

The Australian Retail Sales m/m data (Actual: -1.8%, Forecast: -0.6%, Previous: 0.4%) released yesterday indicated a decline in consumer spending mainly driven by the resumption of lockdown in Victoria and New South Wales.

The Australian flash PMI data will be released tomorrow at 0700 (GMT+8).

- Flash Manufacturing PMI (Forecast: NA, Previous: 58.6 revised from 58.4)

- Flash Services PMI (Forecast: NA, Previous: 56.8 revised from 56.0)

Currently, AUD/USD is testing the support zone of 0.73300 and the next resistance zone is at 0.75000.

Look for short-term selling opportunities of AUD/USD if it breaks the support zone of 0.73300.

USD/JPY Outlook (22 July 2021)

Overall, USD/JPY is trending downwards. Recently, USD/JPY broke above the key level of 110.

Japanese banks will be closed today in observance of Marine Day. Expect lower trading volatility and volume during the usual Japanese market hours.

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

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

EUR/USD Outlook (22 July 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced down from the key level of 1.18.

The European Central Bank (ECB) will be announcing its monetary policy decision later at 1945 (GMT+8). It is likely that the central bank will keep monetary policy unchanged. The ECB is likely going to focus on addressing the adoption of its new inflation target policy. Pay attention to any mentioning of how the new policy will benefit the economy.

A press conference will also be held at 2030 (GMT+8). During this time, volatility is expected in EUR.

EUR/USDs next support zone is at 1.16300 and the next resistance zone is at 1.18200.

If the ECB sends out an optimistic tone on how the new policy will be beneficial, look for short-term buying opportunities of EUR/USD if it breaks the resistance zone of 1.18200.

GBP/USD Outlook (22 July 2021)

Overall, GBP/USD is trending downwards. Recently, GBP/USD bounced off the support zone of 1.36000.

Bank of England committee member Broadbent will be speaking later at 1630 (GMT+8). During this time, there may be volatility in GBP.

Currently, GBP/USD is testing to break above the key level of 1.37. Its next support zone is at 1.36000 and the next resistance zone is at 1.38000.

Look for short-term buying opportunities of GBP/USD if it breaks above the key level of 1.37.

USD/CAD Outlook (22 July 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD broke the support zone of 1.26100.

Currently, USD/CAD is moving towards the resistance zone of 1.26100 and the next support zone is at 1.24500.

Look for short-term selling opportunities of USD/CAD if it bounces off the resistance zone of 1.26100.

GBP/JPY Outlook (22 July 2021)

Overall, GBP/JPY is trending downwards. Recently, GBP/JPY trended into the resistance zone of 151.000.

Bank of England committee member Broadbent will be speaking later at 1630 (GMT+8). During this time, there may be volatility in GBP.

Currently, GBP/JPY is testing the resistance zone of 151.000 and the next support zone is at 148.900.

Look for short-term buying opportunities of GBP/JPY if it breaks the resistance zone of 151.000.

EUR/JPY Outlook (22 July 2021)

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY trended into the resistance zone of 130.000.

The European Central Bank (ECB) will be announcing its monetary policy decision later at 1945 (GMT+8). It is likely that the central bank will keep monetary policy unchanged. The ECB is likely going to focus on addressing the adoption of its new inflation target policy. Pay attention to any mentioning of how the new policy will benefit the economy.

A press conference will also be held at 2030 (GMT+8). During this time, volatility is expected in EUR.

Currently, EUR/JPY is testing the resistance zone of 130.000 and the next support zone is at 128.500.

If the ECB sends out an optimistic tone on how the new policy will be beneficial, look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 130.000.