SGT Chart Book

Market Observations|05 Jun 2023

The main news events from last week is that the US debt ceiling politics are now in the rear view mirror with an agreement that each side of the isle maintaining they gave something up for the American people to get a resolution and not have to endure a disastrous outcome. Also, strong NFP numbers released on Friday, with the result being a “risk on” event and US equites benefitted: big time.

USD30

Testing towards the trendline resistance we have mentioned over the last couple of weekly reports, the USA500 and USA100, both with tech heavy sectors, showing more strength.

US-10YR

Continues to trade within the identified chart pattern, with last week getting close to testing the top side before a retrace.

VIX

A clear breakdown after the debt ceiling agreement was reached.

EURGBP

Traded to new yearly lows after breaking through 0.8720. A couple of weeks ago we suggested that the cross would head lower after the retest of this area - 0.8550 looks like the first line of support.

USDCAD

After identifying the chart pattern, USD strength was quick reversed, as a trader there was a nice short-term opportunity to capitalize on the breakup, but if you had hung around, these profits would have quickly been eroded as we trade back below the trendline.

GBPUSD

Is this a reverse head and shoulders pattern on daily charts? There is not complete symmetry, so let’s keep an eye on this one, with 1.2680 being the upside area to watch.

Crypto

Looks like BTCUSD is a bit of a laggard, or are ETH and XRP getting ahead of themselves after breaking up out of a downtrend line resistance area? See charts below for comparison.

XAUUSD

The trendline support identified last week held and traded within the well-defined range. Forced to trade, I would be a buyer into the trendline support, but we are not, so will continue to watch price action for further clues.

Happy trading - until next time,
SGT Trade Desk

Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.