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Euro Likely to Ignore SNB and Test SFr1.20

Euro Likely to Ignore SNB and Test SFr1.20

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EURCHFRetail traders remain near their most long the Euro versus the Swiss Franc on record, and such incredibly one-sided positions warn that the EURCHF may continue onto test key SFr1.2000 lows.

Trade Implications – EURCHF:A nearly-unbelievable 97 percent of open positions are currently long the EURCHF, and such one-sided positions give us a steady contrarian signal that the pair may continue lower. Today’s Swiss National Bank decision made clear that officials would not hesitate to defend the key 1.2000 mark, and it seems like markets remain poised to test the SNB’s resolve.

See next currency section:EURUSD – Euro at Major Inflection Point

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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