SGT Chart Book

Market Observations|19 Jun 2023

SP500

Having come through a week seeing CPI release and the FOMC announcement of “No Rate Change”, the upward trend continues to gather momentum. The RSI reading is getting into overbought territory.

NASDAQ

Resistance is seen at current levels as indicated by the previous tops and with overbought technical, so we could see a breather here. As previously mentioned, the USA100 has really benefitted from big tech and AI developments.

10-Year

While there is nothing new to say, when looking at this chart, it is good to keep an eye on the levels for clues to the next move.

GBPUSD

GBPUSD traded at a one-year high against the USD last week. There has been GBP strength across the board, as illustrated in the next few charts, showing cross activity against the EUR, JPY, and CHF.

GBPJPY

As we can see, there has been an acceleration of the upwards trend.

GBPCHF

This shows a breakout to the topside on a daily close-only chart (line chart). A line chart that takes one reading per day at the 5 pm EST closing rate. Lots of traders like to look at close -only charts to help identify trend changes. We often hear commentary from technical traders that they need to see 2 closes below/above a certain level. This chart also cuts all the intra-day noise if you are a longer term position trader.

EURGBP

New yearly lows were put in place last week and a strong down trend is place. As we mentioned last week, this cross is oversold, so caution is warranted.

USDJPY

USD weakness was the theme last week with USD/JPY an exception. We identified this channel which we are currently testing around the 141.80 area. We also see bearish divergences which might offer a decent risk/reward trade.

USDCAD

A topside failure and follow-through to the downside offered traders some opportunity last week.

BTCUSD

A brief break below trendline support, but with a lack of momentum, we traded back into the recent ranges. We can see from the chart below where the first real resistance comes in by the downward trendline connecting previous tops.

XRPUSD

Trendline support held the recent sell off.

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.