Gold (XAUUSD) in Rising Wedge. Santa Claus Rally Continuing? Trading Short on USDJPY.

Hey Valutraders! Is the Santa Claus Rally continuing?

Subscribe to Free Valutrades Signals at https://www.valutrades.com/product/tr...

I’m Brad Alexander and in today’s Market Blast, let’s take a look at GBPUSD, USDJPY, Gold (XAUUSD), the S&P500 (US500), and the DJIA (US30).

The Santa Claus Rally is a phenomenon that usually occurs at this time of the year where investors reassess their portfolios and invest in more equities.

This year worked out even better than usual thanks to the US Federal Reserve which is now talking about lowering Interest rates into 2024.

Last week we had a slight interruption due to a lot of activity in the options markets but investors decided to “buy the dip” and the rally continued.

Keep an eye on this into the new year as all the other US indices like the NASDAQ and the Russell have risen above all-time highs.

The S&P500 is about to reach all-time highs as well and you may recall in our last video we were looking at going long here.

The same US Interest Rate news has made USD weaker so gold has moved up again.

But, we see price action in a Rising Wedge which is most often a bearish pattern so we will keep an eye on this going into 2024.

Meanwhile, we have bullish confluence on the stochastic oscillator and a bullish indication on MACD, so be patient.

We also talked about selling USDJPY and look what happened.

We have no indication that this trend will end soon, with USD weakness and JPY strength.

However, beware as all other USD pairs except GBPUSD have price action in rising and falling wedges.

Also, last time we spotted this potential reversal pattern on GBPUSD which could turn out to be a head and shoulders pattern or a descending triangle so let’s keep an eye on this.

Thanks for watching and don’t forget to subscribe to Valutrades Signals. The link will be in this video’s description below.

Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now. Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.