#Gold,#USDMXN,#SP500 Technical Analysis : 18 September 2023

Posted by Clara Mellor on 09:14 with No comments

Gold Technical Analysis: Attempting to Reverse the Trend

  • At the end of last week's trading, the XAU/USD gold price succeeded in rebounding upwards with gains extending to the resistance level of $1930 per ounce.
  • This was before closing the trading stable around the level of $1923 per ounce.
  • The performance came with the recovery of prices from strong selling operations that the gold price XAU/USD reached the support level of $1901 per ounce.
  • This was a reaction to the effect of the strength of the US dollar.

Despite this, it was pointed out a lot about the advantage of buying gold from every downward level. There are other factors that will support gold led by global geopolitical tensions and fears of a global economic recession led by China.

Today's XAU/USD Gold Price Predictions:

According to the performance on the daily chart below, there are attempts for the price of gold XAU/USD to break the downward trend. As I mentioned before, this will happen if the prices move towards the resistance levels of 1945 and 1970 dollars respectively. This will depend on the calmness and frequency of the gains of the US dollar and the increase in the frequency of buying gold due to the stimulating factors for the market as I mentioned at the beginning of the analysis.

According to the performance on today's chart below, the return of the gold price XAU/USD towards the support levels of 1915 and 1910 dollars, confirmation of the continued control of the bears on the trend for a while. The 1885 dollar support will be the most important for thinking about buying gold.

I expect a quiet trading session today as the market is devoid of important data, along with investors' anticipation of the important events that will be listed this week.


USD/MXN: Electric Week Going Against the Broad Forex Market

The USD/MXN certainly proved dynamic last week and its price action before the U.S. Feds monetary policy statement this Wednesday may provide more surprises.

Traders who were worried early last week about the direction of the USD/MXN and were questioning if the long-term bearish trend of the currency pair was coming to an end received their answer. The USD/MXN delivered a strong resounding amount of selling which has essentially brought the Forex pair back to within sight of the 17.00000 level and may have bearish speculators dreaming about values seen in the not-so-distant past near the 16.80000 vicinity less than one month ago.

The USD/MXN Incremental Decline Beat Potential Headwinds

While the USD/MXN had delivered a rather dramatic bullish run higher in the previous two weeks, last week’s trading produced rather intriguing evidence the currency pair has plenty of ability to fight against perceived headwinds. Not only was U.S. inflation data stronger, but the European Central Bank surprised financial institutions with an interest rate hike. While many other major currencies paired against the USD suddenly got weaker last Thursday, the USD/MXN seemed to hardly notice the shifts in global behavioral sentiment and was trading near the 17.09200 ratio after the dust settled regarding the surprise interest rate hike.

Speculators need to understand the U.S. Federal Reserve will conduct its FOMC meeting and make its announcements this Wednesday. The fact that the ECB raised rates last Thursday and made most currencies weaker against the USD as financial institutions grew nervous, but the Mexican Peso remained steady and got stronger is noteworthy.

The USD/MXN Level of 17.05000 Needs Attention

  • The near-term of the USD/MXN could provide plenty of surprises considering its results last week and its ability to swim against the tide. The 17.05000 may prove to be an interesting short-term barometer regarding sentiment.
  • Traders should not be overly ambitious in the short term and be willing to cash out profitable positions before they vanish because of natural reversals in the Forex markets.
  • The USD/MXN certainly proved dynamic last week and its price action before the U.S. Feds monetary policy statement this Wednesday may provide more surprises.

USD/MXN Short Term Outlook:

Current Resistance: 17.07100

Current Support: 17.04760

High Target: 17.09775

Low Target: 17.02200


S&P 500 Forecast: Upward Pressure Amid Pullback and Pause

Buying on dips remains a favorable strategy, reflective of the prevailing market sentiment.

  • The S&P 500 index appears poised to maintain its bullish trajectory, although a continuous ascent may not unfold in a straight upward trajectory.
  • The market's current dynamic suggests that it will remain attractive to buyers on price dips.
  • While a short-term barrier has been surpassed, the upcoming weeks could potentially witness the market striving toward recent all-time highs.

Looking to Buy on Dips

The driving force behind Wall Street's dynamics continues to be the interplay between narratives and monetary flows. If investors demonstrate a willingness to allocate capital to the market, the upward trajectory is poised to persist. It's worth noting that a handful of stocks, with Apple at the forefront, command substantial influence over the S&P 500, underscoring the significance of select equity components. In other words – this isn’t 500 stocks; this is just a handful that moves things. This has been exacerbated by the phenomenon of passive investing, as most trading is done in the ETF markets, meaning that traders are typically buying a handful of stocks multiple times.

In conclusion, the S&P 500 index exhibits a bullish outlook, poised to attract buyers during periodic price pullbacks. While the recent breach of a short-term barrier is promising, the market's journey may entail fluctuations. The 50-Day EMA serves as a sturdy support pillar, with technical trading playing a pivotal role. Wall Street's penchant for narratives and liquidity dynamics ensures that market participants will continue to find opportunities to enter positions. Buying on dips remains a favorable strategy, reflective of the prevailing market sentiment.



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