USDCHF Ratio Eases Suggesting Upside Potential Fading

[B]USD/CHF Ratio: -1.85
[/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             -1.97             [B]-1.85[/B]             35%             8.13%             Bullish                


[B]USDCHF –[/B] The sentiment extreme behind USDCHF has cooled for the third consecutive week, suggesting upside momentum is fading and a break above 1.06 will be more difficult to achieve. The pair’s ratio stood at -1.85 with 65% of open positions short, which compares to the -1.97 reading from last week and -2.13 two Thursdays ago. This steady downtrend from the late April extreme has been relatively steady as the pair’s ongoing reversal has been slow and choppy. Looking at the details, long positions were unchanged from yesterday but 11% greater than last week’s levels. Shorts, on the other hand, were 1.1% weaker than Wednesday and 6.6% stronger than last week. Total positioning grew 9.1% from last week which has brought the monthly average for open interest to 9.9%. Overall, while the USDCHF’s SSI readings have eased over the past few weeks, positioning is still very close to an extreme; so upside potential is still quite high.