Swiss Franc Outlook Turns Negative
USDCHF – Our Speculative Sentiment Index shows that retail trading crowds have turned net-short the US Dollar (ticker: USDOLLAR) against the Swiss Franc (long USDCHF) for the first time since January. As with our Euro/US Dollar forecast, we believe this may be a significant and lasting shift in US Dollar price action. Truth be told, however, we would rather steer clear of any positions on the Swiss Franc.
Speculation over Swiss National Bank intervention has made Euro/Swiss Franc traders as skittish as ever. Such strange conditions are in this author’s opinion not conducive to effective FX trading.
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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