Bearish on Canada? The Trend is Your Friend.

December Canada dollar futures (D6Z25) present a selling opportunity on more price weakness.

See on the daily bar chart for the December Canadian dollar futures that prices are trending lower. The bears have the overall near-term technical advantage, as “the trend is their friend” at present.

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Fundamentally, Canada’s economy is in generally good shape, with a high level of development and a ranking among the world’s largest economies. Canada has solid international trade, including generally good trade relations with the U.S., a diverse economic base and relatively stable economic growth. Meantime, the U.S. has just received a downbeat monthly jobs report and a hotter-than-expected producer price index report. That’s overall Canada-dollar bullish.

A move in the December Canada dollar futures below chart support at this week’s low of .7278 would give the bears more power and it would also become a selling opportunity. The downside price objective would be .7125, or below. Technical resistance, for which to place a protective buy stop just above, is located at .7340.www.barchart.com

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%):

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.

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. This article was originally published on Barchart.com

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