Swiss Franc May Fall Further against USD
USDCHF – Our retail trader-based Speculative Sentiment Index shows that crowds are net-short the US Dollar (ticker: USDOLLAR) against the Swiss Franc for only the second time since January. We most often use the SSI as a contrarian indicator, and the sharp shift towards crowd selling suggests that the USDCHF may continue to gain.
Our Technical Strategist believes that a USDCHF move towards SFr 0.9335 seems likely in the short-term, while intermediate forecasts call for a test of year-to-date highs near SFr 0.9600.
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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