Good morning from Hamburg and welcome to our last Daily FX Report for this week.

The continuing struggle of European leaders to halt the region's debt crisis, has increased investors demand for the safest assets and led to a stronger USDagainst most of its major peers, extending this week`s gain.

Anyways, we wish you a nice and successful trading day, and a great weekend.

Market Review – Fundamental Perspective

The EURhas fallen to a seven-week low against the USD, as Italy, the third largest euro-region economy is going to auction debt today, after the country's two-year-yield has climbed to a 14- year high yesterday. Joint euro bonds are strongly discussed by European leaders these days. According to German Chancellor Merkel, they would immediately lead to a convergence of interest rates in the region. She stated that, "this would take us back to where we were before the crisis." Meanwhile, data on a French consumer sentiment index to be released by the national statistics office today is expected to show a drop to 81 this month after 82 in October. Equities worldwide have only this month lost more than $4 trillion in value due to concerns the debt crisis will damper growth because of rising borrowing costs in the euro-area.

The USDhas performed the first 5-day gain against the JPYin three weeks before a report from the New-York-based conference board due on the 29th of November is expected to show confidence strengthened in November. The household sentiment index may have improved to 44.4 after touching 39.8 in October, which showed the lowest level since March 2009.

The AUDwas set for a fourth straight week of declines due to the fall of Asian stocks after Merkel's rejection of the strongly discussed euro bonds have damped hope for a potential remedy for the region's woes.

The EURwas 0.1 percent lower at USD1.3333 after it has touched 1.3315, the lowest level since the 6th of October. This week, the EURhas weakened 1.4 percent against the USD. The USDon the other hand climbed 0.4 percent against the JPYto 77.38. The JPYtraded at EUR 103.15 from 102.92 yesterday. The AUDdepreciated 0.2 percent to 97.11 US cents.

Daily Technical Analysis - Our Focus Currencies for Today

EUR/USD (H 4)

Since the beginning of November, the EUR has been depreciating against the USD inside a Standard Deviation channel. Recently, the rate fell below the former support level around 1.3430, while the MACD is still bearish. Therefore, we can expect further losses in this currency pair.

Intraday Support & Resistance (H 4)

USD/JPY (H 4)

As we can see, the USD has been strongly weakening against the JPY until at the support level around 76.900 the fall has been stopped. Now, we see a trend reversal with an USD recovering in a bullish Andrew's pitchfork. As the DeMarker is indicating an overbought market, we might see a rebound at the close resistance level around 77.540, before further gains can be seen.

Intraday Support & Resistance (H 4)

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