Canadian Dollar Futures Just Hit an 8-Month High as the US-China Trade War Drags On

Jim Wyckoff Barchart Thu Jun 5, 9:06AM CDT
A pile of Canadian banknotes and coins_ Image by Kikinuchi via Shutterstock_

September Canada dollar futures (D6U25) present a buying opportunity on more price strength. 

See on the daily bar chart for the September Canadian dollar futures that prices are in an uptrend and have just hit an eight-month high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish mode as the red MACD line is above the blue trigger line and both lines are trending up. The bulls have the solid near-term technical advantage, to suggest more price upside in the near term.

Fundamentally, Canada’s trade and foreign relations with the U.S. have stabilized, which is bullish for the Canadian currency. Meanwhile, the U.S.-China trade war continues with little progress made on a trade deal between the world’s two largest economies. That’s U.S.-dollar-bearish.

A move in the September Canada dollar futures prices above chart resistance at .7370 would become a buying opportunity. The upside price objective would be .7625, or above. Technical support, for which to place a protective sell stop just below, is located at .7250.

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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. For more information please view the Barchart Disclosure Policy here.