USD/CHF Ratio: -1.89
Trading Forecast: Bullish

USDCHF – Forex trader positioning in the US Dollar-Swiss Franc pair has become extremely bearish, with 66 percent of traders currently short the USD/CHF. Such sentiment extremes have typically coincided with opposite movements in price, and indeed we see that the US Dollar-Swiss Franc pair has continued to rally through recent trade. In detail, long positions are 4.5% lower than yesterday and 33.7% weaker since last week. Short positions are 4.5% higher than yesterday and 23.8% weaker since last week. Open interest is 1.2% stronger than yesterday and 44.8% below its monthly average. The SSI is a contrarian indicator and signals more USDCHF gains. Our forex trading signals have, as a result, aggressively bought US dollars against the Swiss Franc through recent trade.
Written by David Rodríguez, Quantitative Analyst for DailyFX.com