Swiss Franc Forecast to Gain Despite SNB
USDCHF – A substantial pullback in the USDCHF has forced a noteworthy correction in forex trading crowd sentiment, but crowds remain net-long the US Dollar against the Swiss Franc since the pair traded near the 1.10 mark. Though the short-term shift is substantial, our SSI gives consistent contrarian signal to stay short as the pair continues to trade near record-lows.
The ratio of long to short positions in the USDCHF stands at a sizeable 3.67 as nearly 80% of traders are long. It is worth noting that long positions are 19.4% weaker since last week on the significant USDCHF bounce. Yet the consistent net-long ratio gives contrarian signal that the USDCHF may continue to challenge record-lows.
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