When is the US ISM Non-Manufacturing PMI and how could it affect EUR/USD?

Haresh Menghani FXStreet

US ISM Non-Manufacturing PMI Overview

The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI at 15:00 GMT this Tuesday. The consensus forecast for February stands at 57.3, up from previous month's reading of 56.7 but still far from September's 61.6 - the highest since the inception of the composite index in 2008.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction in case of a relative deviation of +0.90 or -0.69 is likely to be in the range of 22-29 pips in the first 15-minutes and could stretch to around 68-103 pips in the subsequent 4-hours. In the last five releases, the pair moved, on an average, 13-pips in the first 15-minutes after the data release and 38-pips in the following 4-hours.

How could it affect EUR/USD?

Ahead of the release, Yohay Elam, FXStreet's own Analyst offers important technical levels to trade the major: "Support awaits at 1.1310 which was the low point on Monday. Further below, 1.1295 provided some support in mid-February. More importantly, 1.1275 was a swing low around the same period of time. 1.1250 and 1.1235 are below."

"Looking up, 1.1335 supported euro/dollar in late February and 1.1350 was a swing high on Monday. 1.1370 capped the pair in mid-February. 1.1390 and 1.1410 follow after they both served as minor resistance lines. 1.1420 is the last line to watch: it was the February high," he added further.

Key Notes

• ISM Manufacturing PMI Preview: shutdown, what shutdown?

• EUR/USD Forecast: Only a dead cat bounce as bears are in control, selling opportunity?

• EUR/USD Technical Analysis: Bearish continuation - triangle pattern spotted on intraday charts

About the US ISM non-manufacturing PMI

The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that services constitute the largest sector of the US economy and result above 50 should be seen as supportive for the USD.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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