Market setbacks have been very well supported on dips below 125.00 and we look for the formation of a fresh medium-term higher low around the psychological barrier ahead of the next major upside extension back towards and eventually through 140.00. Ultimately, only a weekly close below 125.00 would delay and give reason for concern, while a daily close back above 128.00 confirms bias and should accelerate.


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Foreign exchange” refers to money denomi- nated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money denominated in another nation’s currency acquires foreign exchange. That holds true whether the amount of the transaction is equal to a few dollars or to billions of dollars; whether the person involved is a tourist cashing a traveler’s check in a restaurant abroad or an investor exchanging hundreds ofmillions ofdollars for the acquisition of a foreign company; and whether the form of money being acquired is foreign currency notes, foreign currency- denominated bank deposits, or other short- term claims denominated in foreign currency. A foreign exchange transaction is still a shift of funds,or short-term financial claims,from one country and currency to another.
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