Daily Forex Analysis - 29th July 2021

USD Overview (29 July 2021)

Yesterday, USD weakened against most major currencies except JPY driven by an increase in risk appetite from the market after the U.S. FOMC.

During the monetary policy meeting earlier today, the Federal Reserve held interest rate unchanged at the targetted range of 0-0.25% while maintaining its $120 billion per month quantitative easing (QE). Nonetheless, the central bank remained upbeat in the economys progress towards a tapering of its QE.

The Advance GDP q/q data (Forecast: 8.5%, Previous: 6.4%) will be released later at 2030 (GMT+8).

NZD/USD Outlook (29 July 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced down from the key level of 0.70.

The New Zealand Building Consents m/m data (Forecast: NA, Previous: -2.8%) will be released tomorrow at 0645 (GMT+8).

Currently, NZD/USD is testing the support zone of 0.69500 and the next resistance zone is at 0.71000.

Look for short-term buying opportunities of NZD/USD if it rejects the support zone of 0.69500.

AUD/USD Outlook (29 July 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD bounced off the support zone of 0.73300.

The Australian CPI q/q data (Actual: 0.8%, Forecast: 0.7%, Previous: 0.6%) released yesterday indicated continued rise in inflation during the second quarter driven by fuel prices.

Yesterday, it was reported that COVID lockdown in Sydney will be extended for 4 weeks through 28 August.

AUD/USDs next support zone is at 0.73300 and the next resistance zone is at 0.75000.

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

USD/JPY Outlook (29 July 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY bounced down from the key level of 110.

The Japanese Unemployment Rate data (Forecast: 3.0%, Previous: 3.0%) will be released tomorrow at 0730 (GMT+8).

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 (29 July 2021)

Overall, EUR/USD is trending downwards.

The European Central Bank (ECB) will be releasing its minutes for the most recent monetary policy meeting today at a tentative timing.

Currently, EUR/USD is testing the resistance zone of 1.18200 and the next support zone is at 1.16300.

Look for short-term buying opportunities of EUR/USD if it breaks the resistance zone of 1.18200.

GBP/USD Outlook (29 July 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the resistance zone of 1.38000.

Currently, GBP/USD is testing to break above the key level of 1.39. 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 the resistance zone of 1.38000.

USD/CAD Outlook (29 July 2021)

Overall, USD/CAD is trending upwards. Recently, USD/CAD rejected the resistance zone of 1.26100.

The Canadian CPI m/m data (Forecast: 0.3%, Forecast: 0.4%, Previous: 0.5%) released yesterday indicated a decline in inflation mainly due to a slowdown in price growth in the clothing and footwear category.

USD/CADs next support zone is at 1.24500 and the next resistance zone is at 1.26100.

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

GBP/JPY Outlook (29 July 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced down from the key level of 153.

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

Look for buying opportunities of GBP/JPY if it breaks above the key level 153.

EUR/JPY Outlook (29 July 2021)

Overall, EUR/JPY is trending downwards.

The European Central Bank (ECB) will be releasing its minutes for the most recent monetary policy meeting today at a tentative timing.

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

Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 130.000.