Swiss Franc Expected to Fall Further
Retail forex traders remain aggressively net-short the US Dollar (ticker: USDOLLAR) against the Swiss Franc as it presses to fresh highs, and such one-sided sentiment gives contrarian signal that the pair may continue to strengthen. Traders first turned net-short the USDCHF as it crossed above SFr 0.9300 through early May. The same crowds briefly turned net-long USD as the pair fell through mid-June, but they’ve since returned to their bearish position.
Our technical USDCHF forecast favors a break above key highs at SFr 0.9700 and eventually a run towards late 2010 highs of SFr 1.00.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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