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THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
800-443-2360(March 19, 2002) CURRENCIES: Continue to use the following as a guideline. Sell the U.S. Dollar after rallies as it is poised to move lower, possibly considerably so, this year. Don't make the mistake of believing that higher rates will necessarily strengthen the dollar. Did 11 rate cuts during the past year weaken it? Obviously not, so as the Euro continues to advance this year and even the yen and the Japanese economy continue to improve, the U.S. Dollar looks to fall from these lofty, near all-time high levels. A sell of June futures near 118.50 looks promising. Conversely, a dip to 8750 is a nice buy area for the June Eurocurrency. The technical pattern has turned solidly bullish and a move to 9375 by June would not be a surprise. The June pound held at 140.00 for about the 200th time and has advanced to 142.00 The strong support at 140.00 and the rising Euro will support the pound. This move may stall near 144.00, but I expect a move to 150.00 before year end. A further correction to 7600 may offer a decent buying opportunity in the June yen.
William Frejlich
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