The U.S. growth pace accelerated to 3.0% in the fourth quarter of 2011 beating estimates of 2.8%, and 0.2% above the thirdquarter expansion rate which was at 1.8%. Core PCE; one of the most important gauges of inflation hinted the inflation pressure could be accelerating revised higher from 1.1% to 1.3%, while estimates were pointing towards a steady pace at 1.1%.

While growth figures look encouraging for risk appetite, the accelerated pace of inflation could put decision makers under some pressure after pledging to keep rates at record lows until late 2014; on the other hand, the number remains below the Fed's target of 2.0%.

The initial reaction following the release was risk positive; the EUR/USD pair was supported at lower levels around 1.3420, however it remains trading in the negative territory around 1.3450 after opening the day at 1.3458, printed a daily high at 1.3485 and low at 1.3421.

In general, the upside bias remains in favor; as a possible ascending triangle could be forming, which a continuation patter. The ascending trend line of this triangle resides near 1.3420 support, thus the formation will continue to suggest bullishness within the upcoming short period, unless we see dip below 1.3420 that would suggested renewed downside pressure targeting initially 1.3360 areas. To the upside, a push upwards that surpasses 1.3485 level which is the horizontal resistance of this triangle shall extend upside targets to 1.3550-1.3620.

The GBP/USD pair scored some noticeable gains against the greenback, where the pair was able to beat 1.5925 major high alongside the 200-days SMA. We look for a test of 1.6000 psychological level soon, the overall bullish is set to continue so long as 1.5925 remains intact, where it should support the pair from the downside and halt any downside correctional attempt. 1.6100 is the obvious target above 1.6000 level. Momentum indicators are confirming the bullish move moving in tandem with price action.

USD/JPYlooks hesitant today, the pair is trading near opening price at 80.40, however we have seen downside correctional bias on the pair today as well, however trading is narrow this session among the 80.68 and 80.24. The recent upside rally is set to continue, where major support level is seen among 79.50-79.70 areas. A Push below could extend the correction to 78.30 areas but should be limited at those levels. Bullish targets start at 81.50 and 82.30.

The Canadian dollar is one of the major gainers today, the currency been attractive against its major counterparts, especially the U.S. dollar and the Euro. USD/CAD pair dropped sharply after opening the day at 0.9951; currently trading near the sessions lows at 0.9880. 0.9980 has been a very important pivotal swing low, thus a break and daily closing below the pivot could extend gains for Loonie, while a bullish divergence on Momentum indicators is concerning us regarding the current downside action. We look for momentum indicators to follow price action to confirm the bearish move targeting 0.9780 areas. Main upside support levels reside at 0.9900, a push above 0.9900 again will be a bullish signal.