Here are this month's forex trading patterns

With the start of a new month, it's time once more to look at the trading patterns that have taken place in the past with an eye toward being able to use them in our trading now. For this month there are few real strong patterns which jump out. In terms of the majors, AUD/USD and GBP/USD have both fallen five of the last seven year (since the introduction of the Euro in 1999) during the month of May, but the moves have not been really worth note.

The story is a little more interesting in the crosses. GBP/CAD and GBP/CHF both have had strong downside biases during May over the last seven years. On average, these pairs have dropped in excess of 300 pips each year, which translates to more than 1.25%. AUD/CAD has also been a loser most of the time in May (6 of 7 years). The drop has only been 72 pips on average, though.

There are also some specific days of the week which have demonstrated tendencies worth keeping in mind:

• AUD/USD has fallen 64% of the time for an average of 16 pips on Mondays in May
• AUD/CAD has fallen 75% of the time for an average of 24 pips on Mondays
• EUR/AUD has fallen 68% of the time for an average of 33 pips on Tuesdays
• EUR/CAD has fallen 71% of the time for an average of 22 pips on Thursdays
• EUR/CHF has risen 70% of the time for an average of 13 pips on Fridays
• EUR/GBP has risen 63% of the time for an average of 15 pips on Fridays
• EUR/JPY has risen 63% of the time for an average of 32 pips on Fridays
• GBP/AUD has fallen 65% of the time for an average of 45 pips on Tuesdays

Of course the figures presented herein are simple observations based on the last seven years worth of data. Just because a pair has demonstrated a tendency to act on this way or that does not guarantee that it will do so again this time around. This information is probably best used to help one bias her/his trading, not necessarily as an outright trade decision tool. As always, sound risk management is strongly recommended.

Note: The statistical information provided in this article is presented in Opportunities in Forex Calendar Trading Patterns.

John Forman is the author of Amazon Top Seller "The Essentials of Trading" and a near 20-year veteran of trading and investing across a wide array of markets and instruments. His analysis and market comments have been found in the financial news media across the world and he has published dozens of magazine articles on trading methodology and analytic techniques. To learn more about John's research and trading activities, visit the Anduril Analytics website.