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February 9th - Goldman Sachs trading arm stated that after a rebound in U.S. stocks last Friday, almost recovering the weeks brutal losses, this week will face further selling pressure from trend-following algorithmic funds. The S&P 500 has broken through a short-term trigger point, prompting commodity trading advisors (CTAs) to sell stocks. Goldman Sachs expects these systematic strategies, which track stock market movements rather than fundamental factors, to remain net sellers in the coming week, regardless of market direction. Goldman Sachs stated that if the stock market falls again, it could trigger approximately $33 billion in selling this week. If market pressure persists and the S&P 500 falls below 6707 points, there could be as much as $80 billion in systemic selling over the next month. In a stable market environment, CTAs are expected to sell approximately $15.4 billion in U.S. stocks this week, and even if the stock market rises, these funds are still expected to sell approximately $8.7 billion.February 9th - Goldman Sachs trading arm stated that after a rebound in U.S. stocks last Friday, almost recovering the weeks brutal losses, this week will face further selling pressure from trend-following algorithmic funds. The S&P 500 has broken through a short-term trigger point, prompting commodity trading advisors (CTAs) to sell stocks. Goldman Sachs expects these systematic strategies, which track stock market movements rather than fundamental factors, to remain net sellers in the coming week, regardless of market direction. Goldman Sachs stated that if the stock market falls again, it could trigger approximately $33 billion in selling this week. If market pressure persists and the S&P 500 falls below 6707 points, there could be as much as $80 billion in systemic selling over the next month. In a stable market environment, CTAs are expected to sell approximately $15.4 billion in U.S. stocks this week, and even if the stock market rises, these funds are still expected to sell approximately $8.7 billion.US President Trump: The US election is full of fraud and theft, and has become a laughing stock around the world.Market news: Multiple explosions were heard in Kyiv, the capital of Ukraine.Domestic News: 1. Guotou Silver LOF: Trading suspended from opening on February 9th until 10:30 AM. 2. Several banks raise deposit interest rates as the Spring Festival approaches. 3. Macaus daily inbound and outbound passenger flow breaks record again with 867,000 visits. 4. Jiangsu Provincial Government holds symposium for real estate professionals. 5. Qianwen and Yuanbao red envelope codes can now be copied on WeChat. 6. Hong Kong Financial Secretary Paul Chan: Hong Kongs achievements in cultivating new productive forces are gradually becoming apparent. 7. Hong Kong SAR Government summons Panamas Consul General again, criticizing the ruling for causing profound damage to Panamas economic development. International News: 1. Middle East Situation: ① Hamas senior official: As long as Israel continues its occupation, the Palestinians will not stop resisting. ② Israeli Prime Minister Netanyahu will meet with Trump next Wednesday to discuss the Iranian issue. ③ Iranian Foreign Minister: Iran will never accept "zero enriched uranium". ④ Iranian Armed Forces Chief of Staff: No interest in launching a regional war. ⑤ Pentagons "pizza index" surges. 2. Japanese Election: ① Exit polls: Japans ruling coalition is expected to win a majority of seats in the House of Representatives. ② NHK: The ruling coalition led by Prime Minister Sanae Takaichi is poised to win at least two-thirds of the seats in the House of Representatives. ③ Prime Minister Sanae Takaichi: Will accelerate consideration of reducing the consumption tax. A weak yen has both advantages and disadvantages. 3. Russia-Ukraine Situation: ① Russian media: The US-India joint statement did not mention abandoning the purchase of Russian oil. ② Ukrainian President Zelensky: Russian energy infrastructure is a legitimate target of Ukraines attacks. ③ Ukrainian Foreign Minister denies any connection between Ukraine and the attack on the Russian general. 4. Denmark: Negotiations with the US on Greenland have not met expectations. 5. Data analysis from Vanda Research shows that retail investors poured $430 million into the largest silver ETF, SLV, in the six trading days ending Thursday. 6. US Treasury Secretary Bessenter: Does not expect the Federal Reserve to act quickly on the balance sheet issue. Believes Warsh will be very independent. 7. The Bhumjaithai Party announced that it has become the largest party in the Thai House of Representatives.

USD/CAD Bears are nearing multi-month support close to $1.3470

Alina Haynes

Mar 31, 2023 11:49

USD:CAD.png

 

USD/CAD sellers eye 1.3520-25 after falling to the lowest levels since February 22 as markets become volatile on Friday ahead of the release of crucial US inflation data. As a result, during the five-day losing sequence, the Loonie duo demonstrates modest losses.

 

However, the successful break below the 50-day moving average and the bearish MACD signals maintain optimism among sellers. The absence of a fatigued RSI (14) line strengthens the bearish bias.

 

Notably, a rising support line from early June 2022, which was near 1.3475 at the time of publication, appears to be a formidable obstacle for USD/CAD bears to surmount. In addition to emphasizing the significance of the 1.3475 level, the decline of the RSI below the 50 level suggests that purchasing near the key support line is likely.

 

The 200-day moving average and an ascending trend line from mid-November 2022 near 1.3375 and 1.3295 could challenge the bears if the Loonie pair breaches the 1.3475 support level.

 

To convince short-term USD/CAD investors, recovery advances require confirmation from the 50-day simple moving average (SMA) resistance of 1.3545.

 

However, the mid-month low around 1.3650-55 and December 2022 highs around 1.3705 can challenge the Loonie pair's further ascent before underscoring the previous yearly high of 1.3977.