SGT Chart Book

Market Observations|01 May 2023

EURUSD Weekly Chart

Many market participants are talking about the retest of the broken weekly trendline and that this could present a good USD turning point.

EURGBP 4-Hour Chart

Last week saw a small breach of the 0.8860 resistance area with failure to show follow through. As we can see from the chart below, this culminated in a sharp selloff. 0.8720 has been low for 2023.

GBPUSD Daily Chart (Close Price Only)

Is this a head and shoulders pattern? Not too much symmetry on the shoulders, but let’s see price action this week for any confirmation. Cable traded at the highest level this year on Friday at approx. 1.2585 level.

USDCHF Daily Chart

Last week saw a couple of intraday breaches of the downtrend line we illustrated last week. Still believe a break is needed and close above the 0.9000 level to put in short-term lows.

XAUUSD 4-Hour

Consolidative price action was the theme last week with Gold, seeing good supply above 2k and bids coming in around 1965/75 region.

USD500 Daily Chart

The SP500 is trading above the 50- and 200-day moving averages. Market participants watch these for indications of trend and support/resistance. We had some initial follow through to the downside after breaking the uptrend line we mentioned last week, but this was quickly jumped on and offered the bull an opportunity to pick up some cheap ones. Next resistance seen at 4200.

VIX Daily

The markets widely follow the Vix “also known as the fear gauge”, as it fell last week to the lowest levels since November 2021 - is this the calm before the next storm?

USA30 Daily Chart

After identifying the trendline resistance last week, we saw a sell off early in the week, but closed the week strong with prices on top of the resistance level.