AUDCAD, EURCAD short trade

This real trading environment example shows you how our signals work despite the trickiness of the forex market. In addition, this is also an excellent example of how a currency  -  the CAD in this case  -  reaches inflexion point against several other currencies, resulting in a cluster of signals within a very short time frame. Although, in this example, the system signaled "sell" only for two pairs, other CAD-denominated pairs, including USDCAD, also turned in sync with the signaled ones.

We received "sell" signals from our system on 06/30/2009 for two currency pairs, AUDCAD and EURCAD.  Accordingly, we opened short positions, and the AUDCAD turned the next trading day, 07/01/2009 with a nosedive (see AUDCAD chart below).
 

In contrast, the market action in the EURCAD played out in a different way. For more than a week, the trend resisted the downward pressure that was building up at the market, and tested our entry level before starting to decline on the 07/09/2009 (see EURCAD chart below).

This delay in the EURCAD trend turn, however, overstretched the market even more, which resulted in a bigger downward move. If you check out both trades in the Archives, you can see that the move predicted by our signals in both currency pairs had quite different outcomes. We closed both positions on 07/24/2009, with a 446-pip profit on AUDCAD and an almost twice as high, 856-pip profit in EURCAD.  The EURCAD, however, did not stop there, but continued to drop for another four trading days and turned only at 1.51830 eventually  -  a decline of 1,145 pips in total.  This  example clearly shows how a several-day delay in an overdue turn increased the strength of the subsequent move.  It also shows that it is worth to be patient and to hold a long-term position opened according to our signals even if the market does not move swiftly and violently in the desired direction immediately.