Swiss Franc Rallies Could 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. The ratio of long to short positions in the USDCHF stands at 6.23 as nearly 86% of traders are long. Yesterday, the ratio was at 9.53 as 91% of open positions were long. In detail, long positions are 27.7% lower than yesterday and 0.2% stronger since last week. Short positions are 10.7% higher than yesterday and 23.8% weaker since last week. Open interest is 24.0% weaker than yesterday and 8.7% below its monthly average. Noteworthy capitulation in long positions warns that the USDCHF could soon bounce, but it is difficult to advocate a long position amidst such sharply bearish momentum.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.