Dollar sees consolidation before the next rise after weak ISM Non-Manufacturing PMI (Oct).

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The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Usual Effect: A high reading or a better than expected number is seen as positive for the USD, while a low reading is negative.

Frequency: Released monthly, on the third business day after the month ends.

Last Read :58.6

Expectations : 58.0

Actual : 57.1

Volatility : Various from month to month !! (sometimes high volatility , sometimes medium volatility). 

Market Impact : A reading below 57.4 , will bring bearish move for USD…

Technical Outlook : Intraday outlook in USDINDEX remains on the upside as long as 87.50/86.96 holds on a 4 hour closing basis , next resistance comes at the 88.00 levels ahead of the 88.50/89.00 levels.Below 86.96 would delay the bullish move for retesting the 86.55/86.06 levels before the next rise…

Recommendations : any decline should limited by support levels , by USD on dips !!!