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Euro Remains in Clear Downtrend versus Swiss Franc

Euro Remains in Clear Downtrend versus Swiss Franc

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EURCHFRetail FX traders remain aggressively long the Euro versus the Swiss Franc. Barring a material shift in positions, we continue to favor selling any EURCHF rallies.

Trade Implications – EURCHF:Over 95 percent of open positions in our sample remain long EURCHF. Given that we typically go against the crowd, our algorithms will likely continue to sell the Euro until we see a substantial turn in sentiment. The critical caveat is that the Swiss National Bank seems very likely to defend the SFr1.20 mark if tested; there is relatively limited downside in the currency pair.

See next currency section: EURUSD – Euro May have Set Significant Low versus the Dollar

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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https://www.dailyfx.com/forex/technical/ssi/eur-usd/2014/10/02/ssi_eur-usd.html?CMP=SFS-70160000000NbT3AAK

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