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Breaking News: Beat on ISM Services PMI (Jan) 59.9, DXY Finds Support

Breaking News: Beat on ISM Services PMI (Jan) 59.9, DXY Finds Support

Warren Venketas, Analyst

U.S. DOLLAR ANALYSIS

  • U.S. ISM Services (JAN) – ACT: 59.9;EST: 59.5.
  • ECB slight hawkish pivot weighing down on DXY.
  • Trendline support holding.
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ISM SERVICES PMI HELPS FADING DOLLAR

Both ISM non-manufacturing and Markit services data prints beat estimates for the January 2022 period. Services data traditionally carries greater weight for the U.S. being the dominant sector relative to manufacturing. The important index releases barring the overall figure is the slight drop off in employment and prices respectively – a possible hint to a lower than expected NFP figure tomorrow? This being said, the headline figure remains well above expansionary territory (+50), leaving the current Fed outlook relatively unscathed.

ISM NON-MANUFACTURING PMI (JAN):

ISM NON-MANUFACTURING DATA JANUARY

Source: DailyFX economic calendar

TECHNICAL ANALYSIS

U.S. DOLLAR INDEX DAILY CHART

daily DXY chart

Chart prepared by Warren Venketas, IG

The DXY reacted positively after being pulled down post-ECB, pushing off the longer term trendline support (black) and 100-day EMA (yellow) respectively, but may fall once markets digest the aforementioned details. The index remains in a precarious position as markets flirt with the an extended move lower.

Resistance levels:

  • 97.00
  • 96.01

Support levels:

  • 100-day EMA
  • 95.00

Contact and follow Warren on Twitter: @WVenketas

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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