Good morning from Hamburg and welcome to our last Daily FX Report this week. After nearly 11 hours of negotiations, European leaders reached a breakthrough.

However, we wish you a relaxing weekend.

Market Review – Fundamental Perspective

The euro-area leaders agreed on a new financing package and frees of its half for Greece debts. Several compromises were negotiated and managed to erase a very important part of our debt. “Tens of billions of Euro's have been lifted from the backs of the Greek citizens”, Prime Minister George Papandreou said on a television speech. After he and fellow government chiefs talked round bondholders into accepting 50 percent reduction on Greek debt burden. The reworked deal on Greece’s debt will cut the ratio down to 120 percent of gross domestic product by 2020 from a forecast of about 170 percent next year. The 130 billion euro's in public funding plus the 50 percent write down on Greek debt follows a fully taxpayer-funded package of 110 billion euro's in May 2010. Prime Minister Papandreou needs strong support from his voters to push through measures including job cuts to turn around an economy that is set to reduce 5.5 percent this year.

The Italian Prime Minister Silvio Berlusconi also demands from EU allies at the summit to present a comprehensive plan to speed debt reduction by spurring economic growth. Berlusconi offered a 14-page blueprint with a promise to institute measures aimed at bringing his country's debt down to 113 percent of gross domestic product by 2014. He also reiterated his plan to up the retirement age to 67, saying the process would be complete by 2026.

After European leaders agreed to expand a rescue fund, the EURincreased 2.5 percent to 1.42475 versus the USD. The EUR also advanced 1.7 percent to 107.704 against the JPY. The JPYsloped up 0.3 percent to 75.923 against the USD. The AUDgained 3 percent to 1.07112 versus the USDwhich is the highest level since the 1st of September. The NZDcurrency climbed up 2.4 percent to 82.036 versus the USD.

Daily Technical Analysis - Our Focus Currencies for Today

GBP/AUD (4 Hours)

Since the 4th of October, the GBP/AUD is traded below a long term bearish Fibonacci fan. One week ago, it entered the fan and has recently moved into the lower channel and touched its support level around 1.50151. The MACD indicates further losses so we have to wait and see if the bears are strong enough to cross the support level around 1.50151.

Intraday Support & Resistance (4 Hours)

EUR/JPY (Daily)

Since the beginning of July, the EUR/JPY is traded below a bearish Fibonacci Fan. At the middle of October, the currency pair entered the fan for the first time. Yesterday, the pair breaks through the middle line of the fan and touched its resistance level around 107.501. We might see further gains, if the pair is strong enough to cross the hurdle. But Stochastic Oscillator indicates a downfall.

Intraday Support & Resistance (Daily)

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