USDCHF – Forex 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
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