Good morning from foggy Hamburg and welcome to our Daily FX Report. The announcement of a referendum concerning the austerity measures in connection with the financial aids of the rescue package through Greece Prime Minister Papandreou caught European leaders and investors entirely unexpected.

However, we wish you much success in trading today.

Market Review – Fundamental Perspective

After the surprising announcement of planned referendum through Greece Prime Minister Papandreou, investors and capital markets responded with dismay regarding the strong opposition of the Greece population against the harsh austerity measures of the government to solve the nation’s debt crisis. Also leading European politicians responded with a lack of understanding on the recent single-handedly through the Greece Head of State. Papandreou also earned clear criticism from its own ranks. But before terminating the referendum, the Greek Prime Minister will ask for a vote of confidence in the parliament and the result of this is not yet known. Thereby, the cliffhanger in resolving the debt crisis in Greek entered a new round, while speculations and rumors rose concerning a possible state bankruptcy or a withdrawal of Greece from the Euro-Zone. With this unexpected development, the stability of the 17 nation’s currency and the whole economic growth of this area are threatened again. The markets, determined by a great uncertainty, punished especially the financial assets. In the meantime, the prices of the DAX and the European bank index decreased more than five percent. Also the EURdepreciated significantly against the USDand the risk premiums for Italian government bonds climbed to a new record high. Therefore many investors fled again in the supposed crisis-proof currencies like CHFand JPY. Triggered by the renewed run on the JPY, the Japanese government was forced again to intervene into the markets to stop the soaring of the JPY. This resulted in a new record intervention of almost 100 billion USDwhich was 70 percent higher than the old record in August. But traders are very doubtful whether the Japanese government will be able to lower the rise of the JPYfor the long term. The clear winner of the previous day was the JPY, which benefited from the weak Euro-Zone and advanced against most of its currency peers. The EUR dropped 0.2 percent 107.16 JPYand also the USDlost 0.3 percent to 78.14 versus the JPY. After interim falling more than 0.5 percent, the EURtraded at 1.3703 against the USD.

Daily Technical Analysis - Our Focus Currencies for Today

GBP/CAD (4 Hours)

One week ago, the GBP/CAD touched its support level around 1.59026 and entered a steep bullish trend which rebounded at the resistance level around 1.62966. The Bollinger Band implies a trend reversal with bearish movements before the support level around 1.61484 might stop a further decline back to the support level around 1.59026.

Intraday Support & Resistance (4 Hours)

EUR/AUD (4 Hours)

The EUR/AUD left four days ago a downward Andrew’s pitchfork and rebounded at the resistance level around 1.33211 before returning in the pitchfork and breaking out again. Currently, the pair crossed its support level around 1.32204. The attenuated rising DeMarker and the short term Moving Average are not indicating a further bullish movement, so we might expect that the bears will took control and the pair will fall below the next support.

Intraday Support & Resistance (4 Hours)

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