Canadian Dollar Weakness: A Selling Opportunity Amid US-Canada Trade Friction

The Canadian dollar is experiencing weakness due to ongoing trade friction between the U.S. and Canada. According to a recent analysis, December Canada dollar futures present a selling opportunity on further price declines.

A review of the daily bar chart for December Canadian dollar futures reveals that prices have hit a six-week low and are trending lower. The moving average convergence divergence (MACD) indicator is also in a bearish posture, with the blue MACD line below the red trigger line and both lines trending down.

The trade friction between the U.S. and Canada has the potential to hurt Canada's economy more than the U.S., and the tighter U.S. monetary policy at present favors the greenback over the Canadian currency. A move in December Canadian dollar futures below chart support at .7150 would become a selling opportunity, with a downside price objective of .6900 or below.

The technical resistance for the Canadian dollar is located at .7250, and investors may want to place a protective buy stop just above this level. It's essential to note that trading commodity futures and options can be complex and risky, so it's crucial to understand the risks involved before making any investment decisions.