[B]USD/CHF[/B][B] Ratio:[B] -1.36[/B][/B]
[B]Signal: Bullish[/B]
[B]Currency[/B] [B]Last Week[/B] [B]Present*[/B] [B]% Long[/B] [B]% Change in Positions Outstanding[/B] [B]Signal[/B] USDCHF -1.60 [B]-1.36[/B] 42% -4.93% Bullish
[B]USDCHF –[/B] Forex traders continue to position themselves similarly in the USDCHF and the USDJPY—making our assessment on the Swiss Franc similar to that of the Japanese Yen. The ratio of long to short positions in the USDCHF stands at -1.36 as nearly 58% of traders are short; in last week’s report, short positions actually outnumbered longs by 1.6:1. Such a drop in selling pressure has coincided with a moderation in USDCHF rallies, and recent forex trader positioning changes suggests we may see further Rangebound USDCHF price action before any major moves. Open interest is 3.7% stronger than yesterday, but it is currently 9.1% below its monthly average. Such a drop in aggregate positioning suggests that traders lack conviction in their USDCHF trades. On balance, the net-short SSI ratio implies that we may see further USDCHF advances, but the shorter-term is likely to produce more moderate currency price moves until we see further extremes in positioning. Our technical analyst had accurate forecasts for the USDCHF.