The euro paused the winning 3days streak against USD at yesterday's session closed below 50dSMA. Ahead of non-farm employment change USDX trading The euro formed a winning 3-day spike against USD at yesterday's session, closed below 50dSMA. Ahead of non-farm employment changes, the USDX is trading higher.

The German, Italian, and Spanish readings improved a lot. The recent German data readings were inconsistent compared to Spanish. The inflation rate in Germany is expected to be +0.7% in May 2015. The Federal Statistical Office (Destatis) also reported that the consumer prices are expected to increase by 0.1% in April 2015. Manufacturing PMI readings were not impressive in Germany and France. But Spain and Italy ones beat the expectations. The German Manufacturing Purchasing Managers' Index dropped from 52.1 in April to 51.1 in May. The Markit France PMI rose to 49.4, up from 48.0 in April. Spanish PMI rose to 55.8 in May from 54.2 in April, signaling the strongest improvement in business conditions since April 2007. Italian PMI rose for the fifth consecutive month in May, registering at 54.8 from 53.8 in April. This latest reading pointed to the most marked improvement in overall operating conditions since April 2011.

The US manufacturing PMI dominated the trade. Economic activity in the manufacturing sector expanded in May for the 29th consecutive month, and the overall economy grew for the 72nd consecutive month.

Greece saga: This Friday, Greece is due to make the payment to the IMF.

Upcoming events: Today, traders eye German and Spanish unemployment changes. CPI and Core CPI are expected from the eurozone. Besides, US factory orders are due. We expect Spanish unemployment readings to beat the expectations. But German readings were inconsistent. Major events fall on Wednesday. All members of the ECB's governing council will meet to set monetary policy.

Technical Analysis: The pair closed below 50Dsma and 20Wsma. Weekly resistance is seen at 1.1045. In the four-hour chart, the pair has been moving towards lower highs and lower lows. Intraday support is found at 1.0860 and resistance is seen at 1.0945 and 1.0980. The trend-change support level is found between 1.0820 and 1.0800. The pair managed to breach the falling bearish channel. Small bearish trading opportunity is available below 1.0900 with immediate targets at 1.0860 and 1.0820. The real selling pressure looms below 1.0790, at 1.0770, 1.0700, 1.0660, and 1.0620 in a day or two. Bulls can buy above 1.1010 with targets at 1.1040 and 1.1060. Technically, the trading day favours selling below the support line or using a spike to open sell positions.

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