USDCHF –Retail forex trading crowds have remained steadily net-long the US Dollar (ticker: USDOLLAR) versus the Swiss Franc since it crossed below SFr 0.9500, but long positions have fallen 9 percent since last week while short orders are slightly higher. The slow shift coincides with an important trendline break, and we see risk of a larger correction.

Trade Implications – One of our sentiment-based trading strategies has most recently gone long USDCHF from SFr 0.9339, and the pair’s aggressive break higher suggests that said position may do well through the foreseeable future.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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