NiaTradingSignals

We have seen that the forex market is also a seasonal trading market , some months are just better for currency pairs than other over the course of a long period of time. In this case, we used 10 year charts to best understand the trends over time and include enough time to show a true trend.

GBPUSD Seasonal Trades

September is a good month for GBPUSD.In eight out of the last 10 years, the GBPUSD has rallied in September.Europe generally takes August off as a time for their seasonal vacations or holidays as they’re called across the pond, this is one of the reasons stated for the GBPUSD to gain ground as European traders get back to the markets and move back into summer positions. Breakdowns in 2005 and 2006 might show some disagreement to this trend. We’ll see how it develops.

EURUSD Seasonal Trades

January is a downer for EURUSD This one has a clear cut answer as for why this trend has developed. At the beginning of each calendar year, when financial audits and tax info is coming out, many funds move money back into their own currency. In January, Forex and hedge funds bring money back into a local currency to prepare for calculations of earnings and makes asset accounting that much easier.

Trading these trends of course has some risk, overall though, all of these trades do average out to bring some profitability to your trading. I would suggest, if you were to take advantage of these trades, would be to trade an Fxbox or a similar product to bet that the currency pair will not end the month below a certain number. Brokerages such as Oanda offer this trade.

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