USD/CHF Ratio: -1.52
Signal: Bullish
USDCHF – USDCHF has seen a steady advance since the sharp, bullish reversal from last week. In fact, earlier this week, the pair finally broke free of a two-and-a-half month mature descending trend channel that has clearly worked against the retail market’s bias. Since the reversal on the 16th of this month, in fact, the SSI has sustained a net negative reading. Today, the speculative sentiment gauge stands at -1.52 with nearly 60% of the community looking for 1.0500 to perhaps hold as resistance and USDCHF to find way back into the middle of its congestive territory. However, despite the group’s overall convictions, it has clearly been difficult for traders to fight the trend. Capitulating to the advance, longs have grown 6.0% through the past week – though they actually slipped 0.6% over the past 24 hours. At the same time, shorts were forced to liquidate with momentum culling the short-side by 18.2% through the week – while here again short interest actually rebounded 1.1% since yesterday. With one technical break down, open interest has fallen 9% but is still 2.3% above the monthly average.
