SGT Chart Book

Market Observations|17 Jul 2023

Last week saw both US CPI and PPI inflation numbers coming in better than expected.

US10 YEAR

Having broken out and tested the previous highs seen in March, around 4.09%, selling has pushed rates back down to 3.85% levels back into the channel. So where to from here?

USA100 (Nasdaq)

Bulls finally get rewarded and break above the 15,200 previous tops. Any short-term weakness should come above this level with “the previous resistance now acts as support”.

USD500 (SP500)

Bear divergencies are still building in the SP500, with the daily indicator in over-bought territory.

DXY (Dollar Index)

Suggestion of lower US rates have sent the Dollar index lower, breaking the previous base at the 100.80 level. We could see a period of consolidation, with a sell-rallies scenario.

EURUSD

As reported last week after the breakout of the daily chart, 3^rd Time WAS the charm, and we have broken above the weekly trendline that most of the market has been watching.

XAGUSD

As we mentioned earlier, Silver was ready for a pop and that’s exactly what happened, with the metal gaining close to $2 after the breakup.

BTCUSD

Not much to say here, more sideways trading activity. Waiting for the next catalyst to excite the market.

XRPUSD

Ripple surged on Thursday after a judge ruling in the Southern district of New York. One market participant commented, ‘by judging that XRP is not a security, we are starting to get clarity on what constitutes a security and what constitutes a commodity’.

Until next time, happy trading all

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.