Swiss Franc expected to Fall Further
USDCHF – Forex trading crowds turned net-short the US Dollar against the Swiss Franc when it crossed above the SFr 0.9400 mark, giving contrarian signal that the pair may continue trading higher. The USDCHF has subsequently traded in a fairly tight range, but the fact that it has not violated important congestion support suggests the trend remains to the topside.
The ratio of long to short positions in the USDCHF stands at -1.25 as nearly 55% of traders are short. Yesterday, the ratio was at -1.56 as 61% of open positions were short. In detail, long positions are 1.2% higher than yesterday and 10.5% weaker since last week. Short positions are 19.3% lower than yesterday and 36.5% weaker since last week.
The drop in short interest waters down our bullish bias, but we generally favor fresh highs as long as the USDCHF remains above important congestion support near the 0.9300 mark.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to firstname.lastname@example.org
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.