One of our Signal member *Patricia Dooley from USA* emailed us a good question regarding this USD/CAD downard move:
Question : I have been trading fixed income instruments for many years, But I don’t understand why your USD/CAD signal went into good profits of +300 points before the news of CAD interest rate announcement, But After news release, why market falls down too faster?
Answer : Most of the Technical traders expected the USD/CAD will move up and they are holding their Buy orders in USD/CAD. That’s the reason market moved up Technically before the news. But After the news, CAD result seems to be positive,it affects the market to fall down more in just 2 minutes.
Let’s see another example about Fundamental(news) moves in forex market.
2 weeks before we had a Big fall in GBP Pairs due to Brexit event.
But before the Brexit result announcement, Market move up more around +8500 points in GBP/USD in just 5 days.
Who really makes that +8500 points move before BREXIT ?
Only Technical traders move the market up more.
Why the technical traders keep buying GBP before BREXIT ?
Traders believe market will move up technically + Former Britain prime minister “David Cameron expected a good result for Britain”. But unfortunately, Result came completely opposite and very bad to Britain.
These are the nature of fundamental moves that can strike the technical moves sometimes in forex market.
Hope you understand about the Fundamental (news) movements in Forex trading.
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