USD/CHF Ratio: -1.89
Signal: Bullish
| USDCHF | -1.60 | -1.89 | 35% | 10.08% | Bullish |
USDCHF – The USDCHF worked on extending its month long consolidation pattern last week. However, despite the congestion, speculative retail positioning is certainly building up pressure behind a major trend reversal. The pair’s SSI reading stood at -1.89 today, its most extreme net negative reading since October of 2006. The ratio seemed to be steadily building into negative territory, with last week’s reading at -1.65 and the one before that coming in at -1.52. The divide in market positioning reveals little interest in fighting the trend and a considerable backing for a sustained USDCHF bear rung. Longs were only 0.1% greater than yesterday but a substantial 23.4% fewer than last week. Short interest however jumped 12.1% from Wednesday and is 43.1% stronger than last week. Total open interest is only 1.2% greater than last week and 18% above the monthly average. The net negative reading is still below historical extremes, but the steady build and congestion in the underlying may indicate a bottom is being formed.
