USD/CHF Ratio: -1.14 Signal: Bullish
USDCHF – The correlation between USDJPY and USDCHF continues to breakdown. While the former has developed a very distinct, dollar-based rising trend, the franc-based pair has yielded to a closing wedge that has defined price action since the beginning of the year. Technically, USDCHF resembles EURUSD with the dollar testing firm resistance. However, unlike its euro counterpart, USDCHF has maintained a relatively neutral sentiment reading. The SSI stood at -1.14 today with 53% of the surveyed group holding short positions. This weak reading maintains the steady trend in the ratio towards parity after having peaked in the beginning of May. Details reveal little volatility among positioning. Long trades were a mere 0.6% lower than yesterday and 1.8% weaker than last week. At the same time, short positions slipped 2.4% from Wednesday, though they were 9.1% greater on the week. Overall, open interest was a modest 2.2% greater on the week and 3.0% below the monthly average. As a contrarian indicator, the USDCHF SSI is giving a restrained projection for an advance.