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Forex pairs in this Article » EUR/USD (Barcelona) - The EURUSD rallied to as high as 1.3536 ahead of the EMU January confidence report. Consumer confidence improved from -26.3 to -23.9 as expected, industrial confidence rose from -14.2 (revised from -14.4) to -13.9 (consensus of -13.5), business climate rose from -1.11 (revised from -1.12) to -1.09 (consensus of -1.00). The Economic Sentiment Indicator beat expectations by rising from 87.8 to 89.2 (consensus of 88.2).

Profit taking made price action ease to 1.3523, but the market remains bid and in for more. The widely expected ADP employment report is due at 13:15 GMT. "There is market expectation of 165K in January, closer to the actual 168K gain in private payrolls positions in December (according to the BLS nonfarm report) than the 215K ADP reading in December", wrote TD Securities analysts. Also today are the publication of US GDP and the FOMC meeting decisions.

"Immediate targets lie at 1.3547/67, 02 Dec / 18 Nov 2011 highs, ahead of psychological 1.3600 barrier", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to1.3477 as initial support, while any stronger retracement is expected to hold above 1.3420/00, 28/29 Jan range floor / previous highs.
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