wmeubank@ocp.kcmo.com
THE REAPER
P.O. Box 84901, Phoenix, Arizona
(October 9, 1997) CURRENCIES: It is fish- or-cut-bait time for the U.S. Dollar and the European currencies. The U.S. Dollar has declined into support. The European currencies have rallied into resistance. The next trend direction will probably pivot on whether the U.S. Federal Reserve or the German Bundesbank raise interest rates first. Elsewhere, the commodity currencies, the Australian Dollar and the Canadian Dollar are rallying against the U.S. Dollar. The New Zealand Dollar and the Singapore Dollar are now approaching undervalued buying levels against the U.S. Dollar. The December Japanese Yen is also attempting to bottom at 0.82 against the U.S. Dollar, with now the third higher low on the stochastic indicator. That's often bullish. The British Pound becoming part of the Euro when it comes onstream January 1, 1999 is significant.
RECOMMENDATION–Futures investors profitably long December Canadian Dollar use 0.7247 open- protective stops. Take partial profits. Futures investors profitably long December British Pound use 1.5969 open protective stops. Take partial profits. Futures investors profitably long December German Deutschemark use 0.5689 open protective stops. Take partial profits. Futures investors profitably short December U.S. Dollar Index use 97.51 open protective stops. Take partial profits. Futures investors profitably long December Australian Dollar use 0.7279 open protective stops.
R. E. McMaster, Jr.
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