Last week we saw CAD move +109 pips & as you can see on the charts i banked +81 pips out of that move. To give you'll some perspective on why i expect more CAD bullish moves in the near term , as we all know the fed is determined to get inflation to average above 2% and low interest rates for the next 3 years. To achieve that a lot more money would bacially be needed to be thrown into the economy , with that said with the stimulus package upon us that would be help the fed with their 3 year plan. So as a result we'd see a lot more bullish moves in CAD along with BTC , OIL , GOLD , SILVER , S&P 500 , just to name a few. On friday CAD erased all of its gains against the JPY forming a beautiful double bottom above my optimal trading zone , which is a good place to reload your bullish positions. I would advise to wait until we get a break & close above 80.000 just above the 100 & 200 SMA before entering. If it goes that way we could see price test the monthly highs around 80.606 , +85 pips or +1.07% from its current price. Let me know what you think in the comments....
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We saw a big decline to around 78.000 in the past week due to uncertainty about the election and we saw some safe haven buying boosting the JPY & USD. Fast foward to election day market is definitely pricing in a Biden win sending the safe havens down and riskier assets higher. If CADJPY can hold above the current support around 79.450 we could see a move back towards 80.490.