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 in a downtrend and last Friday hit a 2.5-month low. The bears have the overall near-term technical advantage as “the trend is their friend.”

Fundamentally, the U.S. economy is generally healthy, overall, despite last week’s downbeat U.S. jobs report. Canada’s economy is seeing declining labor productivity, high housing costs and a potential slowdown in business activity. That’s U.S. dollar-bullish and Canada dollar-bearish.

A move in the December Canada dollar below chart support at .7289 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 .7350.

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.