Swiss Franc Forecast Turns Bearish
USDCHF – US Dollar/Swiss Franc positioning has recently flipped to net-short for only the second time since the pair traded near the 1.10 mark, giving signal that the pair may have set a significant bottom through previous price action. Crowds have since flipped back to net-long territory, but near-neutral positioning gives us no strong short-term bias.
The ratio of long to short positions in the USDCHF stands at 1.10 as nearly 52% of traders are long. Yesterday, the ratio was at 1.08 as 52% of open positions were long. In detail, long positions are 0.2% higher than yesterday and 12.2% weaker since last week. Short positions are 2.0% lower than yesterday and 9.7% stronger since last week. The substantial shift towards selling gives contrarian signal the USDCHF may continue to rally.
To get on the mailing list for the SSI and other reports from author David Rodriguez, e-mail subject line “Distribution list” to email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.