Forex retail trading crowds remain net-short the US Dollar (ticker: USDOLLAR) versus the Swiss Franc, but a more recent shift in positioning suggests they may shift biases. We initially called for USDCHF strength as crowds turned short on a break above SFr 0.9200 in May, but short positions fell a noteworthy 20 percent since last week.
As with the Euro and British Pound, we believe that the US Dollar may continue to trade lower against the Swiss Franc. Indeed, our technical forecasts for USDCHF are opposite those of the EURUSD.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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