Trade update, cut your losses and seasonals...

Hi traders!

Whilst I've been in South Africa for the past two weeks, the markets haven't really done much but has still yielded some trading opportunities.

The Sterling crosses rebounded slightly and GBPAUD was the best performer although that has now been stopped out at breakeven. Hopefully, you managed to kill the GBPNZD trade as price action struggled to bounce of that level - shown by 4 high test/hanging man candles and a doji. Hardly the sign of strong buyers coming into the market! Let your winners ride and cut your losses short as they say. You may get it wrong sometimes but the effect of compounding is on your side.

The JPY pairs have still been great to trade on an intra-day basis but rather difficult end of day. As they saying goes 'trade the trend until the bend at the end'.

A few pairs I'm looking at now are EURAUD and AUDCHF. Historically, February is the worst performing month for EURAUD and the best performing for AUDUSD.

Whilst EURAUD has broken a bullish head and shoulders pattern it has run into resistance at the 1.32 handle. The divergence also suggests a pullback.

AUDCHF is essentially the opposite trade because of the Euro peg, however, it is also at the lower support level of its 6 month trading range.

Of course if these levels fail then look for breaks and retests to confirm the new direction.

Happy trading!