USD/CHF Ratio: -2.12 Signal: Bullish
USDCHF – The USDCHF’s SSI ratio reached a new extreme this week. A -2.12 reading shows that nearly 68% of speculative retail traders are net short. And, while today’s reading is slightly lower than the -2.14 figure from yesterday, this week’s new extreme matches the net negative readings from the final quarter of 2006. What’s more, the steady shift in the balance to an extreme short reading suggests upside potential is building. From the report, details show longs are 8.9% greater than yesterday but 16.3% below last Thursday’s levels. Shorts were 8.4% stronger than yesterday and a staggering 59.7% stronger than last week. And, despite the surge in short positions, open interest was actually 2.2% weaker than last week though it is also 17.5% above the monthly average. The SSI is a contrarian reading, so the steady push towards more extreme readings points to further gains for USDCHF going forward.