USD/CHF Ratio: -1.14 Signal: Bullish
USDCHF – Though USDCHF is in the same boat as USDJPY as a risk sentiment gauge, positioning between the two pairs has diverged considerably over the past week. While USDJPY longs have built up substantially on supposed support, retail traders seem to have been swept up by the current that is driving spot towards parity. The SSI ratio flipped to a net negative reading at -1.14 with 53% of speculative traders short. Today’s reading compares to the 1.02 reading from yesterday and 1.11 from last week. Open interest has grown 6.8% from Wednesday and 18.8% over the past week, suggesting this flip has garnered greater validity. Taking responsibility for the shift, shorts jumped 14.9% from yesterday and a staggering 66.7% from last Thursday. Long positions were 1.1% weaker than yesterday and 5.3% than last week. Since the SSI is a contrarian read, this flip implies a USDCHF reversal is at home.