One of the weaknesses in macro trading is that you have a clear bias for a currency pair.

Say, one central back is on a rate hiking cycle and another one is on a rate-cutting cycle the medium-term direction of the pair is simple to predict. However, that doesn’t mean that there will not be short term movements in the pair that is against the main medium-term direction.

So how do you manage this? Always be aware of what your risk is and use key technical levels to determine that risk. You can always re-enter at better prices, so don’t make the mistake of allowing a scenario where you are in large amounts of drawdown. This in turn will impact your trading psychology and ability to make trading decisions.