United States ISM Non-Manufacturing PMI data is due at 15:00 GMT on Wednesday. High volatility is likely in the financial markets if the actual reading comes better or worse than expectations. EUR/USD is expected to be the most affected pair because Eurozone’s growth data is also due on the same day. A higher reading means there was expansion in the US services sector, the largest economic sector for the United States. This translates to a rise in the US stock market and strengthening of the US dollar.
Therefore, EUR/USD will likely be the most volatile pair on Wednesday. For the week, 1.3891 and 1.3524 are the two resistance and support levels, respectively, for the EUR/USD for this week. If Eurozone GDP comes in higher than expectations and US non-manufacturing PMI misses its forecast, then it could possibly prove to be a good strategy to buy EUR/USD at 1.3891.
Written by Daniel Elo, Independant Analyst for www.EconomicCalendar.com
