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

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. Consensus estimates point a modest pickup in the activity and the index is seen rising to 53.5 in October from 52.6 previous.
 
Meanwhile, analysts at TD Securities are also looking for a modest rebound in the US ISM non-manufacturing index to 53.7 following the drop to a three-year low in September. “We expect the services sector to have improved in October on the back of a solid US consumer. Service sector surveys suggest small gains during the month, while consumer spending has continued to prove resilient.”

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 -0.70 or +0.63 is likely to be in the range of 21-26 pips in the first 15-minutes and could stretch to around 51-pips in the subsequent 4-hours.

How could it affect EUR/USD?

Yohay Elam, FXStreet's own analyst outlines the technical set-up and offers important levels to trade the EUR/USD pair – “Momentum on the four-hour chart has turned negative, and EUR/USD dipped below the 50 Simple Moving Average – both bearish signs. However, the currency pair bounced off the 100 SMA. Overall, bears are feeling more confident but have yet to take control.”
 
“Fierce resistance awaits at 1.1180, which has capped euro/dollar twice in recent weeks – a double-top. It is followed by 1.1230, which held the pair down in August. It is closely followed by 1.1250, also dating back to the summer. Weak support awaits at 1.1125, a swing that was seen in early November. It is followed by 1.1115, which is today's low. Next, we find the double-bottom of 1.1075, which is strong support. 1.10 and 1.0940 are next,” he added further.

Key Notes

US Service Sector October PMI Preview: That turned corner must be around here somewhere
 
EUR/USD Forecast: Trump's potential tariff removal may remove the floor under the pair
 
EUR/USD Technical Analysis: Downside pressure targets the 1.1070 region

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.