Euro Very Likely to Test 1.20 versus Swiss Franc
DailyFX.com -
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURCHF – Retail traders remain near their most long the Euro versus the Swiss Franc on record, and it seems almost-inevitable that the EURCHF tests the Swiss National Bank’s stated floor at SFr1.20.
Trade Implications – EURCHF:Almost 98 percent of open positions were long the EURCHF last week, and even the fact that open short positions more than doubled leaves the crowd at 93% long. Such one-sided positions give us a steady contrarian signal that the pair may continue lower, but the obvious question is whether the Swiss National Bank will ably defend the critical SFr1.2000 mark.
See next currency section:EURUSD - Euro at Potentially Significant Turning Point
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.