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Swiss Franc Expected to Decline against USD

By , Quantitative Strategist
14 June 2012 15:46 GMT
ssi_usd-chf_body_Picture_3.png, Swiss Franc Expected to Decline against USD

USDCHFForex retail trading crowds remain net-short the US Dollar (ticker: USDOLLAR) versus the Swiss Franc, but a clear moderation in short interest gives us pause on our previously bullish bias. In fact total short positions are at their lowest level since the pair traded near SFr 0.9200 in early April.

Our broader US Dollar-bullish forecast implies that we will view any USDCHF pullbacks as corrections within a broader uptrend. One of our sentiment-based trading strategies recently took a USDCHF-short position on the clear shift in crowd positioning. Yet our Senior Technical Strategist warns that a hold of Sunday’s low at SFr 0.9480 leaves focus on congestion highs near SFr 0.9680.

How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com; Contact David via Twitter at http://www.twitter.com/DRodriguezFX

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14 June 2012 15:46 GMT