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To: Les H who wrote (5283)	1/30/2003 8:54:12 AM
From: Les H	Read Replies (1) \| Respond to of 29602

Moreover, dollar short positions are at near record highs, so from a contrarian perspective, the dollar may be a good buy over the medium term, once the event risks have had time to play out. A good indication of a coming reversal would be when momentum indicators on a daily and weekly chart begin rolling over while price action tries to push the dollar higher. This divergence is a classic signal of coming trend change. This happened today with the EUR/USD daily chart which now shows waning momentum according to RSI and has also been confirmed by the MACD and Stochastics rolling over. The implication is that a near term correction is probably under way, but does not rule out further gains over the next few weeks. A final high is likely to be signaled once the weekly chart resembles the daily. When Stocastics, RSI and the MACD are all pointing to waning momentum the charts indicate a divergence between price and force has taken place. Such a negative divergence would likely carry the EUR/USD back towards its previous July high of 1.02. forexnews.com