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Forex Sentiment Gives Little US Dollar/Swiss Franc Bias
Thursday, 08 January 2009 14:41:48 GMT  |  David Rodri­guez, Quantitative Analyst and Antonio Sousa, Chief Strategist
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USD/CHF ratio: 1.06
Trading Forecast: Bearish

ssi_2009-01-08_CHF


USDCHF – Outlook for the US Dollar against the Swiss Franc remains unclear due to sharp drops in trader open interest. The ratio of long to short positions in the USDCHF stands at 1.06 as nearly 51% of traders are long. Yesterday, the ratio was at 1.07 as 52% of open positions were long. In detail, long positions are 12.2% higher than yesterday and 5.5% stronger since last week. Short positions are 13.0% higher than yesterday and 42.6% weaker since last week. Yet overall trader open interest remains 47.9% below its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses, but trader indecision gives us little confidence in said forecasts. All the same, our forex trading signals remain net-short the USD/CHF through recent trade.

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