US Dollar Awaits ISM Manufacturing PMI for Action
Titan FX | Apr 01, 2015 02:12AM ET
Key Highlights
· US Dollar after surging higher lost ground against majors, especially against the British pound.
· Today, in the US the Institute for Supply Management (ISM) Manufacturing Index will be released, which is expected to decline from 52.9 to 52.5 in March 2015.
· GBP/USD climbed higher and gained momentum after clearing the 1.4820 level.
Technical Analysis
The British pound dived sharply against the US dollar recently and tested the 1.4720-50 support area where buyers somehow managed to protect more losses in the near term. The GBP/USD pair corrected higher and also cleared an important bearish trend line on the hourly chart, which was acting as a barrier for the pair. This particular break ignited a sharp upside reaction in GBP/USD, which took it higher.
Currently, the pair is trading around the 50% fib retracement level of the last leg from the 1.4993 high to 1.4752 low. However, a positive thing to note is that the pair is now trading above the 100 hour simple moving average. There is a chance that the pair might dip a bit from the current levels, but most likely regain bids if it moves lower.
On the downside, the 1.4800-20 can be seen as a short-term support moving ahead.
US ISM Manufacturing Index
Today, during the NY session, the US Institute for Supply Management (ISM) Manufacturing Index, which represents business conditions in the US manufacturing sector will be released. The market is expecting for a decrease from 52.9 to 52.5 March 2015. If the outcome comes below the forecast, then the US dollar might trade lower in the short term.
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