Swiss Franc Expected to Weaken
USDCHF – Trading crowds have significantly scaled back US Dollar long positions against the Swiss Franc, giving contrarian signal that the pair may continue higher. The ratio of long to short positions in the USDCHF stands at -1.01 as just over 50% of traders are short. Yesterday, the ratio was at 1.20 as 54% of open positions were long. In detail, long positions are 2.7% lower than yesterday and 33.1% weaker since last week. Short positions are 10.0% higher than yesterday and 4.7% weaker since last week.
The flip to net-short is marginal, but it represents a substantial shift in crowd sentiment and warns that the US Dollar may continue to rally against the falling Swiss Franc.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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