Swiss Franc Forecast to Strengthen
USDCHF – Trading crowds are once again net-long the US Dollar against the Swiss Franc, giving contrarian signal that the pair may continue its recent losses. The ratio of long to short positions in the USDCHF stands at 1.21 as nearly 55% of traders are long. Said ratio is almost exactly unchanged from yesterday as long and short positions are roughly flat.
Ideally we would wait until further SSI extremes before taking a more aggressive stance on the USDCHF. Yet the modestly net-long ratio gives contrarian signal that the pair may continue its recent declines.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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