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Forex Traders Remain Bearish, Signal Rallies
Thursday, 04 September 2008 14:51:09 GMT  |  David Rodriguez, Quantitative Analyst
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USD/CHF Ratio: -1.28
Trading Signal: Bullish

Forex Positioning in the US Dollar/ Swiss Franc

 

Currency Last Week Present* % Long % Change in Positions Outstanding Signal
USDCHF -1.32 -1.28 44% -7.01% Bullish

 

09-11-08-SSI1

 
USDCHF – Forex trading speculators continue selling the US dollar against the Swiss Franc, and the contrarian signal forecasts that the USDCHF will continue to rally through short-term trading. The ratio of long to short positions in the USDCHF stands at -1.26 as nearly 56% of traders are short. Yet it serves to note that the ratio actually stood at a more extreme -1.52 reading yesterday, and an overnight 21.6 percent jump in long positions suggests that currency traders may be shifting bias on the USDCHF. When traders are net-short but have begun to buy a given currency pair, our Forex SSI gives a relatively weak contrarian signal to buy the currency pair.

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