Swiss Franc Eyes 2012 Lows
USDCHF - The ratio of long to short positions in the USDCHF stands at -1.86 as nearly 65% of traders are short. Yesterday, the ratio was at -1.90 as 66% of open positions were short. In detail, long positions are 4.1% lower than yesterday and 15.9% weaker since last week. Short positions are 6.1% lower than yesterday and 15.6% weaker since last week. Open interest is 5.4% weaker than yesterday and 3.8% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF gains.
Similar to the EURUSD, the relative strength index on the USDCHF shows an overbought signal, but the pair looks poised to track higher as it maintains the upward trend from earlier this month. As the dollar-franc clears the 94.00 figure, we may see the pair make a run at the 2012 high (0.9594), and we will be closely watching the 10, 20, and 50-Day SMA’s as the moving averages start to break away from one another.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Song, Currency Analyst
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