Swiss Franc Outlook Turns Bearish
Trading crowds remain net-long the US Dollar against the Swiss Franc, but a recent turn in positioning has led our sentiment-based trading strategies to buy the USDCHF on the first signs of an important turnaround.
The majority of retail traders went long the US Dollar/short the Swiss Franc as the USDCHF crossed below SFr 0.9520 several weeks ago, but short interest has risen 11 percent since last week while longs are slightly lower.
We don’t often advocate joining the crowd on such one-sided positioning, but early signs of turnaround give clear pause in our previously bearish USDCHF bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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