77% of traders long USD/CHF
Midway through the trading week, we update Client Sentiment levels - percentage of tastyfx clients with long or short positions - for major forex pairs like EUR/USD, USD/JPY, and more. Find out what traders are thinking this week.
Forex sentiment update
US dollars are trading below 0.9000 against the Swiss franc, and traders are 77% long the major forex pair. USD/CHF has been as low as 0.88000 and as high as 1.0100 in the last year of trading - 3 out of every 4 traders are positioned for a bounce back in USD.
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How client sentiment works
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall. (Values taken using tastyfx's Client Sentiment measure as of the previous day's close.)
Trend followers might go with sentiment, while contrarians would tend to go against the trend. For example, a 65% long measure in EUR/USD could reflect a buying opportunity for trend followers or a selling opportunity for contrarians.
EUR/USD sentiment - 58% short
Last week's sentiment: 57% short
Euro sentiment has held relatively unchanged at 58% short versus US dollar as EUR/USD continues to trade in a range between 1.0600 and 1.1000. Until the major pair moves outside of this recent range, sentiment is likely to be somewhat contained around 50/50.
GBP/USD sentiment - 50% short
Last week's sentiment: 64% short
British pound sentiment went from 64% short to an even 50/50 split in the last week as GBP/USD fell from highs above 1.2800 to trade closer to 1.2600. The pound is still one of the strongest major currencies of 2023, and traders are showing more confidence in GBP than its european counterparts EUR and CHF.
USD/JPY sentiment - 70% short
Last week's sentiment: 67% short
Japanese yen has retained long sentiment as it continues to trade near lows against the US dollar and other major currencies. USD/JPY is trading well above 140.00 once again, and the majority of traders are going against the trend.
USD/CHF sentiment - 77% long
Last week's sentiment: N/A
More than 3 out of every 4 USD/CHF traders are long the major forex pair as it trades below 0.9000. CHF has shown similar strength as GBP and EUR in recent trade, but traders are more bearish on the Swiss franc than its British or Eurozone counterparts.
AUD/USD sentiment - 69% long
Last week's sentiment: 52% short
Australian dollar sentiment has grown to 69% versus the US dollar in the same time that AUD/USD fell from near 0.6800 closer to 0.6600. Australia's ties to Asia could be the source of the relative bearishness as the US and Europe trend higher than Japan and China.
USD/CAD sentiment - 69% long
Last week's sentiment: 71% long
USD/CAD fell below 1.3200 in June for the first time since September 2022, and sentiment on the pair rose to 69% long. The Canadian dollar went on a bullish run recently after the Bank of Canada unexpectedly raised interest rates by 25 basis points.
How to trade client sentiment
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
