[B]USD/CHF Ratio: -1.02
[/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 -1.85 [B]-1.02[/B] 50% 30.82% Bullish
[B]USDCHF –[/B] Similar to the yen-based pair, USDCHF positioning has both moved back towards parity and experienced a sharp drop in open interest. However, unlike its close counterpart, the USDCHF sentiment figures have actually pulled back from recent extremes. The pair’s index stood at -1.02 in the most recent reading which is far reduced from the -1.85 print last week and -1.97 figure from the period before that. At the same time, net positioning dove 32% on from last week and is now 21.9% below its monthly average. Looking at the activity on both sides of the market, it is clear where this decline in open interest has come from. Since yesterday, long traders have slipped only 5.1%, which has in turn led to a 3.8% decline on the week. However, short positions fell 4.3% from Wednesday and have contracted a massive 47.9% over the week. This significant reduction in shorts likely reflects traders taking profit on range trades that held 1.06 as resistance. Altogether, the SSI is giving a very weak upside outlook for USDCHF.