SGT Chart Book: Hiring Slows Down in June

Market Observations|10 Jul 2023

SGT Chart Book: Hiring Slows Down in June

Last week’s focus was on economic data released Friday which showed that US employers added 209,000 workers in June, down from May’s 306,000, while wages rose and unemployment fell to 3.6%.

The data suggests the Fed is likely to raise interest rates later this month. Clearly the US equity markets did not like the data with US major indices falling on Friday.

US10 YEAR

As previously discussed, the breakup above the downtrend was seen last week with rates testing March 2023 highs. Last year’s highs of around 4.3% once more look to be on the cards.

USD30

Trendline support centered around the 33,200 area and currently rallies struggling to get above the 34,500 area.

USD100

Rallies continue to fall at the previous tops identified by the horizontal blue line around the 15,300 level.

USD500

The SP500 is showing some divergences between price and the RSI (Relative Strength Index). A sign that participants should be wary - not an out-and-out sell signal.

EURUSD Hourly

The chart below shows a breakout to the top side, but how much legs will the rally have with the RSI in overbought territory? Looking at the next chart, which is weekly, clearly shows previous attempts have failed at the resistance line (in red).

Is the ‘third time a charm’?

EURUSD Weekly

XAGUSD

Silver looking poised for a breakout.

BTCUSD

Consolidation was seen last week, and the RSI has backed from over bought levels. Is this getting ready for the next wave up?

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.