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Why You Should Sell Canada Dollar Futures Now Amid Middle East Energy Shock

The article advises selling June Canadian dollar (USDCAD) futures as prices trend lower and hit a four-month low. It cites a Middle East energy shock that favors the U.S. dollar (DXY) because the U.S. is less dependent on energy imports, plus a resilient U.S. jobs report. Technically, a move below support at 0.7183 would strengthen bears with a downside objective of 0.7000; resistance for a protective stop is at 0.7270. The note frames this as a near-term trading opportunity, implying further downside pressure on the Canadian dollar and bullish implications for the U.S. dollar in FX and futures markets.

Category

USD/CAD

Sentiment

Bearish

Event

Technical analysis

Reading time

1 min