After a choppy range bound week, we can see the market testing the short-term uptrend line, currently around 4110/15 area. A break here would put a test of the 4070 level. We believe the choppy trading, and lower volatility suggests confusion among market participants.
US 10-Year Daily Chart
The chart shows a continuation of the recent theme, that we have mentioned, trading within the down-sloping channel.
Apple Daily Chart
Last week saw Apple testing close to the trend line resistance we identified for our readers. This comes in at about the 168.50 level. As we can also see by the chart there is a nice up-sloping trend line, let’s keep an eye on these two trend lines for further directional clues to the stock.
EURGBP 4-Hour Chart
This currency cross continues to trade sideways between 0.8980 and 0.8720 during the first four months of 2023. Recent highs and trend line resistance comes in around 0.8860 - watch this for clues of initial strength. 3 levels of support to watch are at 0.8790, 0.8760, then yearly lows of 0.8720.
USD/CHF 4-Hour Chart
This chart confirms the USD dollar downtrend that we have recently seen. A break above the 0.9000 level would be needed to change this on the charts.
Last week we mentioned the potential for the completion of a 5-wave pattern for XAU/USD. As we show on the daily chart below, we wanted to mention that multiple time horizon analysis can help traders determine market directions, as we illustrate here the short-term, 4-hour chart is showing bearish divergencies not necessarily a sell signal on its own, but worth noting. The end of wave 5 can often exhibit divergencies.
Elliot wave is not an indicator, but a theory and as such is open to interpretation, accurately predicting markets using Elliot wave requires practice because the trader needs to figure out how to draw the wave counts.
XAU/USD Daily Chart
XAU/USD 4-hour Chart
BTC/USD 4-Hour Chart
Last week we mentioned that the rally seen in BTCUSD was not confirmed by some of the technical studies and showed bear divergences, as we can see the market sold off from a high of just below $31,000 to current levels of $27,500 at the time of writing. We see support coming in at $27,200, then previous lows around $26,400/500. Key level high is the $25,200 level.
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.