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EUR/USD trading signal - U.S. ISM Manufacturing PMI - 02 Jul 2018

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Signal details
Entry Price: 
1.1630
Close Price: 
1.1639
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The monthly PMI activity from the manufacturing sector across the United States will be released by the Institute of Supply Management (ISM) today at 1500 GMT. According to the economists polled, the ISM's manufacturing PMI is expected to modestly slip to 58.1 for the month of June.

This would mark a somewhat moderate pace of decline in the manufactuing activity especially after the index surged to 58.7 just the month before in May. Regional manufacturing index reports however suggested that the momentum was maintained during the month of June.

This potentially leaves the room open for an upside surprise in today's release of the ISM manufacturing PMI. With the data covering the final month of the second quarter of the year, the data is expected to bring some volatility.

Investors are hoping that the U.S. economy might have advanced at a faster pace in the second quarter after the recent first quarter GDP report confirmed that the economy grew at a subdued pace of 2.2% in the three months ending March 2018.

Based on the above, today's trading signal is EURUSD. The currency pair was seen posting strong gains on Friday with price action retreating partly earlier today. However, we expect the declines to push the currency pair back to the lower support and then prices to bounce, eventually closing higher on the day.

eurusd trading signal 02 jul 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.