Here are the Sentiment indications given by the Daily Forex Indicator "Sentiment Speculative Index" for the week 29 June - 3 July 2015.
The SSI is a contrarian indicator, which elaborates Forex trend forecasts in the opposite direction as to the Retail Traders net positions.
The table shows the sentiment given by the SSI indicator on the major Forex pairs.
We have selected the most significant signals given by the indicator.
AUD/USD: bearish trading bias
AUD/USD - 67% of traders are long, with the long positions increasing from the levels of last week. The fact that the majority of traders are long gives a bearish signal on the AUD/USD and the fact that the trading crowd has grown further net-long from last week makes the bearish signal even stronger.
GBP/JPY: bullish trading bias
GBP/JPY - The majority of the retail traders are short (72%), and up from last week. Using the SSI as a contrarian indicator to price action we have a clear bullish sentiment on the pair GBP/JPY.
USD/JPY: moderate bearish trading bias
USD/JPY - 59% of traders are long, slightly decreasing from last week. The fact that the majority of traders are long gives signal that the USD/JPY may continue lower. The trading crowd has grown less net-long from last week and this lowers the significance of the signal.
NZD/USD: moderate bearish trading bias
NZD/USD - 73% of traders are long but decreasing from last week as long positions are 10.3% above levels seen last week against the growth of 15.8% of the short positions. Based on these two elements, the SSI indicator gives a moderate bearish signal on the pair NZD/USD.