US ISM Manufacturing PMI overview
The Institute of Supply Management (ISM) will release its latest manufacturing business survey result at 1400 GMT this Tuesday. Consensus estimate point to a slightly lower reading of 57.7 for August, down from previous month's 58.1 and further below a four-month high level of 60.2 touched in June.
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 +0.81 or higher is likely to be around 29-pips in the first 15-minutes and could stretch to 56-pips in the following 4 hours.
Alternatively, a deviation of -0.73 or less could move the pair higher by around 25-pips in the first 15-minutes and 57-pips in the subsequent 4-hours.
How could it affect EUR/USD?
Yohay Elam, FXStreet's own Analyst explains, “1.1580 is the meeting point of the 200 Simple Moving Average (SMA) on the four-hour chart and the low point on August 31st. Further down, 1.1530 cushioned the fall on August 23rd. It is followed by 1.1490 seen earlier in the month.”
“1.1640 is the meeting place of the 50 SMA and worked as support last week. 1.1695 worked as resistance late in August. It is followed by the 1.1735-1.1750 area which capped the pair in late August and beforehand throughout July,” he adds further.
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About the US ISM manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector. It is a significant indicator of the overall economic condition in the US. A result above 50 is seen as positive (or bullish) for the USD, whereas a result below 50 is seen as negative (or bearish).