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SSI Points To Further Franc Declines

Thursday, 03 April 2008 18:45:28 GMT

Written by John Kicklighter, Currency Analyst

USD/CHF Ratio: -1.52
Signal: Bullish

Currency Last Week Present* % Long % Change in Positions Outstanding Signal
USDCHF -1.26 -1.52 40% -16.09% Bullish

SSI7_4-3

USDCHF – Though USDCHF has recently taken its cues from the yen-based major, the two have begun to diverge with both sentiment and underlying price action. While USDJPY has just marked a flip this weak, USDCHF positioning has held net negative for nearly a month now. At the same time, though the franc-based pair has entertained a negative reading for far longer than its yen counterpart, the USDCHF upside has been far more modest than what USDJPY has seen in just the past few days. The USDCHF ratio stands at -1.52, with 60% of traders short, compared to -1.22 yesterday and –1.26 last week. In detail, long positions have dropped 14.4% from Wednesday and 44.8% since last week. Suggesting retailers are trying to pick a top, shorts grew 6.7% from yesterday and 27.6% from last week. Open interest is fell a modest 2.8% from yesterday and is only 2.1% below its monthly average. 

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