USDCHF – Forex trading crowds have turned net-long the US Dollar against the Swiss Franc, giving contrarian signal that the pair could trade lower through the foreseeable future.
The ratio of long to short positions in the USDCHF stands at 1.22 as nearly 55% of traders are long. Yesterday, the ratio was at 1.12 as 53% of open positions were long. In detail, long positions are 16.2% higher than yesterday and 21.5% stronger since last week. Short positions are 6.2% higher than yesterday and 15.7% weaker since last week.
The shift towards crowd USDCHF buying gives us contrarian signal that the pair may continue to trade at least modestly lower.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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