FOREX ANALYSIS: Swiss Franc Eyes Gains
USDCHF –The ratio of long to short positions in the USDCHF stands at 1.84 as approximately 65% of traders are long. In fact, long positions are 5.5% higher than yesterday and 29.7% above levels seen last week. Short positions are 8.2% lower than yesterday and 9.6% below levels seen last week.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the USDCHF may continue lower. Current SSI is more net-long than yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.