Swiss Franc Trades Nervously on SNB
USDCHF – Our Speculative Sentiment Index shows that retail trading crowds remain net-long the US Dollar (ticker: USDOLLAR) against the Swiss Franc. Normally this would lead us to call for near-term losses. Yet the USDCHF remains stuck in a frustratingly narrow range, and only a break below SFr 0.9000 would signal that fresh lows are entirely likely.
As it stands most are watching for clues that the Swiss National Bank will intervene in the Euro/Swiss Franc, and the USDCHF is likely to respond in kind. This is hardly fertile ground for speculators, and we’ll stick to the sidelines while Swiss Franc traders remain as skittish as ever.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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