US ISM Manufacturing Up Next
The US ISM manufacturing reading is on deck today. In the wake of the June FOMC meeting, which saw the Fed revising higher its dot plot forecasts and upgrading its economic forecasts, US data as taken on greater importance. USD short positioning has been unwinding steadily since the FOMC though there is still plenty of upside scope in positioning given the extended USD sell off over Q2.
Looking ahead to the data then, the market is looking for a reading of 61.0, slightly lower than the 61.2 seen last month. Given the slightly lower expectations, however, there Is plenty of room for a spike higher in USD should the data surprise to the upside.
Where to Trade US Manufacturing?
EURUSD
The downturn lower in EURUSD has seen the market trading back within the bearish channel from yearly highs, with the subsequent retest of the channel top providing resistance. Price is now sitting on support at the 1.1844 level, a break of this level will open the way for a move down to the 1.1719 level next, in line with the bearish MACD and RSI readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.