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

Today, the focus of many investors will be on the U.S. economy, because of the today’s release of the latest economic data.

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

Market Review – Fundamental Perspective

Today, the EURmight be able to retract the greatest weekly gains versus the JPYand the USD since nearly six weeks if the economic data released today will correspond with the investors’ expectations. According to forecasts, the economic figures should show the recovery of the U.S. economy. Especially, the labor market figures should have improved according to the payrolls growth of 125,000 workers in November and the rising U.S. manufacturing to 52.7 or 51.8 after an estimated survey by Bloomberg. Points above 50 indicate economic growth. As a result, the demand for secure assets declined and the USDdepreciated against nearly all of its most traded currency counterparts. But many experts expect a high influence of today’s data on the trading of the USD. In addition, Japan’s Finance Minister Azumi supported rumors concerning a further intervention in the capital market targeting the containment of currency speculations on the JPY. Therefore, the EURhas strengthened 0.11 percent to 104.72 from 104.60 the day before and has reached overall the highest gain with 1.8 percent within 5 days since October. The USD advanced 0.1 percent versus the JPYto 77.79, while the EUR remained nearly unchanged at 1.3464 versus the USD. Thereby, the USDbenefited 5.9 percent during the last six months according to the Bloomberg Correlation-Weighted Indexes and was the best performer after JPY.

Influenced by the positive prospects of the U.S. economy, the AUDand NZDadvanced too. The AUDrallied to 1.0221 from 1.0244 yesterday against the USDand gained 0.06 percent to 79.54 versus the JPY, while the NZDtraded at 0.7800 against the USDand rose 0.2 percent to 60.70 JPY.

Daily Technical Analysis - Our Focus Currencies for Today

EUR/GBP (4 Hours)

After falling below the hurdle around 0.87828 at the end of October, the EUR has been depreciating against the GBP to the support level around 0.84908, where the pair experienced demand and moved into slight upward trend above a bullish trend line. Recently, the rate is approaching the resistance level around 0.86186 and trading close to the upper Bollinger band, while the Stochastic Oscillator is still bearish. Therefore, we can expect a return of the market to the support level around 0.85280.

Intraday Support & Resistance (H4)

EUR/JPY (4 Hours)

As we can see in the chart below, the EUR has been strongly weakening against the JPY until at the support level around 102.562 the fall has been stopped. Now, we see a trend reversal with a EUR breaking out of a bearish Andrew's pitchfork. The just below the 100-level stagnating Commodity Channel Index is us still not providing with a signal for a further bullish movement, therefore we might see a temporary decrease to the next support level around 103.415, before gaining again.

Intraday Support & Resistance (H 4)

•  Read the Varengold analysis on majors, crosses and exotic pairs