Swiss Franc Rallies Likely to Slow
USDCHF – Crowds have remained net-long the US Dollar against the Swiss Franc since the pair traded near the 1.10 mark, giving consistent contrarian signal to stay short the fast-falling pair. Yet a more recent shift weakens our bearish contrarian bias. The ratio of long to short positions in the USDCHF stands at 4.68 as nearly 82% of traders are long. Yesterday, the ratio was at 5.43 as 84% of open positions were long. In detail, long positions are 5.6% lower than yesterday and 10.2% weaker since last week. Short positions are 9.5% higher than yesterday and 6.4% weaker since last week. Open interest is 3.2% weaker than yesterday and 1.2% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses, but the sudden move towards closing longs and opening short positions suggests momentum will slow.
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