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Positive GDP Numbers Calm Recession Fears

Posted 08-28-2008 at 03:26 PM by fxKnight.com (FXKnight)
by Andrei Pehar - fxKnight.com

US preliminary GDP came in at 3.3% today, for the moment calming fears of a full-blown recession among investors. Analysts had been projecting a figure of 2.6%, and the prior quarter was also revised up to 1.9%.

Adding to the bullish mood on Wall St. today was the drop of 7000 unemployment claims since last month to 425,000; however according to the US Department of Labor any figure above 400K is still considered to indicate a contracting economy.

While we've seen some Dollar strength both today and in the days leading up to it, on the EUR/USD pair specifically we find ourselves at a rather critical level - and which side of 1.4772 we end up trading on may well help...
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USD/CAD

Posted 08-27-2008 at 04:03 PM by fxKnight.com (FXKnight)
Wednesday, Aug 27 2008, 10:04 GMT
by Andrei Pehar

The Loonie has hit both of our targets from the prior week. Where is this pair headed next?

1.0445 is the key level to keep an eye on. A drop below, followed by a successful re-test as resistance, may bring further targets at 1.0358 and 1.0272 into view.

More likely, price will range between 1.0445 and 1.0553 a while, at least until we get some key inflationary data out of Canada on Friday.

A break above 1.0553, followed by a re-test as support, may mean we're on our way to test the prior high of 1.0727 once again.

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Andrei Pehar, Sr. Currency Strategist, fxKnight.com

Andrei is a private fund manager, consultant to management, and a sought-after speaker and coach for professional traders and individual investors alike. At a young age he was already playing in professional chess tournaments, and went on to further hone his strategic skills through years spent studying Japanese martial arts. From both worlds, he brings with him a unique perspective to the financial markets.

His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts.

Andrei is a regular contributor to BabyPips, DailyFX, and FXStreet. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques. His site fxKnight.com provides free tools and strategies for professional traders and individual investors (including live chat, strategy forums, training videos, worldwide market news, and streaming ForexTV).


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