Swiss Franc Uptrend Intact
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 the past weeks have seen a progressive drop in long positions and similar build in short interest. The ratio of long to short positions in the USDCHF stands at 2.03 as nearly 67% of traders are long—contrarian bearish.
It is worth noting that long positions are 10.9% lower than yesterday and 0.6% weaker since last week. Short positions are a significant 19.2% lower than yesterday but 15.9% stronger since last week. Open interest is 13.8% weaker than yesterday and 8.1% below its monthly average. The trading crowd remains overall sharply net-long, giving us a longer-term bearish bias. Yet the more recent build in short interest suggests the pace of declines could slow.
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