Swiss Franc Outlook Turns Bullish
Retail FX trading crowds have bought aggressively into recent US Dollar (ticker: USDOLLAR) losses against the Swiss Franc, and a purely contrarian view of crowd sentiment favors further USDCHF declines. In fact traders are now net-long for the longest stretch since the pair traded near SFr 0.9200 in May.
As with other USD pairs, it remains critical to watch whether the US currency can continue lower amidst such low FX market volatility. Yet the build in US Dollar long positions against the Swiss Franc favors further short-term weakness.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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