USD moves higher after stronger ISM services data.

The ISM nonmanufacturing index came in stronger than expectations at 53.8 versus 50.8 expected. However employment remains below 50 at 47.1 (but up from 45.9). The prices paid was lower than last month at 58.1 versus 59.2

The USD has moved higher after the report:

  • EURUSD moved above the high resistance target at 1.0887 just prior to the report, but rotated lower and is approaching the rising 100-day moving average of 1.08621. A move below 100-hour moving average would have traders looking toward the 200-hour moving average 1.0853.
  • THe GBPUSD moved to the low of a swing area on the 4-hour chart between 1.2793 and 1.2802, but is now lower. The low price reached 1.2764. The rising 100-hour moving average comes in at 1.27558. The 200-hour moving average comes in at 1.27494. Those are downside target that need to be broken to increase the bearish bias.

The markets are still increasing the probability of a Fed rate cut for September and November:

This article was written by Greg Michalowski at Source