Downside surprise in ISM Services could deal another significant blow to the USD – TDS

The ISM will also release the Services PMI survey for March. A downside surprise could deliver another dent to the USD, economists at TD Securities report.

EUR/USD has shown capacity to breach above the 1.0930 level, further upside ahead

“Should ISM Services surprise to the downside (we are a bit below market), it could deal another significant blow to the USD against the EUR and the JPY.”

“We remain short USD/JPY and spot 130.80/00 as the next major tech pivot point ahead of 130, as it coincides with YTD uptrend support. Note, however, that USD/JPY appears to have re-entered a downtrend channel from the March highs.” 

“EUR/USD has also shown the capacity to breach above the 1.0930 level, which coincides with downtrend resistance from the May 2021 highs and would suggest that further upside ahead.”