When will the US ISM Services PMI for December be released, and what potential impact might it have on the EUR/USD pair?

Preview: US ISM Services PMI Release

The Institute for Supply Management (ISM) in the United States is set to announce its Services Purchasing Managers’ Index (PMI) for December today at 15:00 GMT.

Forecasts suggest that the services sector continued to expand, albeit at a slower rate. The Services PMI is anticipated to register at 52.3, a slight decrease from November’s 52.6. As the services industry represents roughly two-thirds of the US economy, market participants will be watching this data closely.

In addition to the headline PMI figure, traders will also analyze key sub-indices, including the Employment Index, New Orders Index, and Prices Paid, for further insights.

If the ISM Services PMI falls short of expectations, it could fuel speculation about potential interest rate reductions by the Federal Reserve (Fed), especially as policymakers remain cautious about the nation’s economic prospects. Conversely, stronger-than-expected results may offer some reassurance to Fed officials, though they are unlikely to significantly alter the prevailing dovish outlook.

Potential Impact on EUR/USD

At the time of reporting, EUR/USD is trading steadily at 1.1690. The currency pair remains below its 20-day Exponential Moving Average, currently at 1.1719, which is trending downward and limiting any upward movement.

The 14-day Relative Strength Index (RSI) stands at 45.7, indicating a neutral stance but showing signs of decline, which points to weakening momentum and a more bearish short-term outlook.

While technical signals suggest a bearish trend in the near term, there is a strong possibility of a bullish reversal since the pair is approaching a significant support level near the December 4 high at 1.1670—a level that previously served as resistance. Should EUR/USD drop below this support, it could extend losses toward the November 28 low of 1.1555.

Alternatively, if the pair manages to climb above the January 6 high of 1.1743, it could revisit levels not seen in over three months, potentially reaching 1.1800.

(This technical analysis was generated with the assistance of an AI tool.)