December Canada dollar (D6Z25) futures present a selling opportunity on more price weakness.
See on the daily bar chart for the December Canadian dollar futures that prices have dropped recently and are now just above key technical support, that if breached, would likely set off sell-stop orders to drive prices still lower. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has just produced a bearish line crossover signal, as the blue MACD line has crossed below the red trigger line.
Fundamentally, the Canadian economy is dependent on natural resources — particularly crude oil (CBX25), natural gas (NGV25), and metals. Canada is one of the world's top oil exporters, and the recent declines in crude oil prices has pressured the Canada dollar against the U.S. dollar.
A move in the December Canada dollar below the aforementioned solid chart support at the August low of .7220 would give the bears fresh power and it would also become a selling opportunity. The downside price objective would be .7050 or below. Technical resistance, for which to place a protective buy stop just above, is located at .7300.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
