ISM Services PMI

The U.S. dollar moved lower after private payroll growth missed expectations, while services activity also came in below consensus. EUR/USD and GBP/USD advanced, USD/CAD tested support, and USD/JPY remained capped near a key resistance zone.

GBP/USD traded around 1.3450 as markets looked ahead to services PMI releases from both the United States and the United Kingdom. Technical traders are watching whether a developing bullish flag can keep upside pressure in place toward 1.3550 or whether a break below 1.3400 weakens the setup.

AUD/USD traded flat near 0.7040 on Wednesday but remained well above last month’s 0.6865 low as risk sentiment improved. Technical traders are watching 0.7100 as the next upside level, while a move below 0.7000 would weaken the bullish case.

EUR/USD hovered near 1.1525 after a risk-on shift driven by falling oil prices and hopes around the Strait of Hormuz. Technical traders are watching whether the pair can clear the 200-day EMA and extend toward 1.1650 or slip back toward 1.1400.

The U.S. Dollar Index moved higher after ISM Services PMI showed continued expansion, keeping traders focused on resistance levels above 101.15. EUR/USD softened on weaker Euro Area Retail Sales, while USD/JPY climbed back above 162.00 as rate-difference expectations continued to weigh on the yen.

GBP/USD is trading near a dense resistance zone after a bullish channel breakout failed to deliver a decisive extension. Traders are watching whether the pair rejects 1.3375-1.3405 or slides toward support around 1.3297 and 1.3300.