SGT Chart Book

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Economic data this past week showed Americans keep spending-though they are growing more pessimistic about the economy.

The 10-year Treasury yield rose for a second consecutive week and settled at 4.321% on Friday, around its highest levels of the year.

Oil prices rose this past week, with Brent crude prices settling at their highest levels since November 2022. Over the past three weeks, Brent has rallied almost 12%, its largest such gain since April.

Higher gas prices have been vexing some investors’ forecasts that inflation would continue easing. Earlier in the week, new data showed that consumer prices in August rose at their fastest pace in more than a year, fueled by a jump in energy costs.

The European Central Bank hiked rates by 25bps, taking the cumulative total tightening to 450bps and the deposit rate to a record high. The message from the ECB was clear – it believes it has done enough and the hiking cycle is over. In its statement the ECB said: “Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”

Upward trendline support contains dips in major US indices.

Dow (USA30)

Nasdaq (USA100)

US 10 Year Rates

Well-formed up channel continues to provide major support and resistance area.

DXY Dollar index

Dollar trades towards top end of yearly range – 50–200-day crossover noted.

EURUSD

Having broken trendline support, we saw a retest of break level before selling pressure ensued, testing previous lows on daily chart at 1.0630 area.

Metals

Gold XAUUSD

Just like last week rallies were contained by the trendline resistance.

Silver XAGUSD

Well defined support and resistance levels can be seen, defined by triangle formation. Last week saw a good test of the uptrend line support before buyers came back to the market.

Crude Oil

US OIL

US oil continues to push higher, looking left previous daily highs around 92.70/80 would be next reasonable chart target.

BTCUSD

Retest of major support zone sub 25,000 was seen last week before buyers entered the market. Volatility is still very subdued.

Until next week, happy trading…
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.

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