FOREX ANALYSIS: Swiss Franc Forecast to Strengthen
USDCHF –Retail forex traders have remained aggressively net-long the US Dollar (ticker: USDOLLAR) versus the Swiss Franc since it crossed below the SFr 0.9500 mark in early September. We have accordingly called for further declines, and a recent build in long positions solidifies our bearish bias.
There are currently 3.2 retail traders long the USDCHF for every one that is short. Said ratio represents a modest pullback from the 3.5:1 seen last week, but clearly one-sided sentiment gives us little reason to stray from our contrarian forecast for further weakness.
--- 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.