USD/CHF Ratio: 1.11 Signal: Bearish
USDCHF – Finding the same level of momentum as its Japanese counterpart, the Swiss franc has rallied to new record highs against the US dollar; and speculative positioning is keeping the downside open to further declines. However, while positioning is still net positive with a ratio reading of 1.11, the extreme in sentiment is cooling quickly. Just last week, the SSI stood at 1.66. Retail traders have certainly made an effort to join the trend. Short positions grew 20.2% from yesterday and have surged 44.6% since last week. Long trades have actually dropped 11.9% from Wednesday and are 2.5% weaker than last week. Altogether, outstanding positions are 0.8% greater than yesterday and 15.4% above the monthly average. The SSI is a contrarian indicator, so the USDCHF’s reading points to an extended decline.