Canada Dollar Futures See Buying Opportunity Amid US Dollar Weakness

According to Jim Wyckoff's analysis on Barchart.com, the Canada dollar (D6Z26) futures are presenting a buying opportunity due to its recent price strength. The December contract has reached a two-month high and is in an uptrend, giving bulls the near-term technical advantage.

The U.S. dollar ($DXY) has been pressured by less robust economic data, including the July employment report and this week's tamer inflation reports - the CPI and PPI. In contrast, Canada's commodity-export-driven economy is benefiting from the rise in global commodity prices.

A move above chart resistance at .7240 would be a buying opportunity, with an upside price objective of .7435 or higher. Technical support is located at .7170, where investors can place a protective sell stop.