ISM Manufacturing PMI preview: What to expect of EUR/USD?

The Institute for Supply Management (ISM) will release its manufacturing PMI for US on Monday, and investors will be watching closely following an awful US GDP reading last Friday. The market is looking for a slight decline in mfg PMI to 53 in July, from 53.2 the previous month.

In the light of latest FOMC statement, data has become more relevant to assess the state of the economy and the likelihood of another rate hike by the Fed before year-end. However, PMI might have tepid effect on the greenback ahead of the nonfarm payrolls data, which will be the highlight of the week on Friday.

EUR/USD technical levels

Ahead of data, EUR/USD was trading around 1.1165, a few pips down on the day, having spent the last sessions in a slim range after finding resistance at 1.1197 post-GDP.

As for technical levels,  next resistances are seen at 1.1197 (Jul 29 high), 1.1235 (100-day SMA) and 1.1300/02 (psychological level/Jun 13 high). On the other hand, supports could be found at 1.1152 (50-day SMA), 1.1075 (200-day SMA) and 1.1051 (Jul 28 low).