The Wave Chartist

A jubilant 2024 to all traders 💃🕺💃🕺

The market was very volatile in 2023 - impressively fueled by the banks' decisions to tighten their monetary policies after consistently rising inflation numbers.

Volatility remained sticky till the last quarter of the year following a significant drop in the inflation curve toward the banks' mandate targets. The market started pricing the fact that banks have reached the peak of their tightening cycle and will start loosening up in 2024. Many of the banks, however, have shown that this market perception is dependent on their evaluation of upcoming data. However, the Fed were the first to show their hands, revealing up to three cuts in 2024. This is the reason why the dollar has fallen against most of the other major FX. While subsequent speeches were aimed at tuning down their dovishness, the market refused to back off until the first week of January when the USD took a breather.

The depreciation of the dollar had a massive positive effect on risk assets. Stocks saw a considerable rise, nearly reaching an all-time high while Bitcoin experienced an uptick of over 70% as it prepares for this year's 'halving'. In a similar vein, Gold reached a new all-time high last month as US treasury yields took a nosedive.

As traders, it is crucial to be prepared for another potentially volatile year. Major banks such as the FED, BoC, RBA, RBNZ, ECB, BoE, and SNB are expected to implement rate cuts this year. Due to their relatively strong economic positioning, the US Fed is most likely to be at the forefront in 2024 - with the market forecasting the first cut to take place in March. In contrast, the Bank of Japan (BoJ), which has taken a divergent path from other banks by maintaining an ultra-loose policy in 2023, is projected to commence hiking rates. This move might set the Japanese Yen (JPY) up for bids (buying) against the other major FX.

Amid the banks’ policy days, the market's attention will remain fixated on the inflation numbers (Consumer Price Index - CPI). This is expected to be the most critical economic statistic that traders and policymakers will take into account in their decision-making.

In conclusion, let's brace ourselves for another year filled with fascinating trading adventures. Here's wishing you the very best in all your trading endeavours! 🥂 🥂 🥂

trapped btw 1225 and 1240 after breaking out of last week range. I have two high likely scenario. A break above 1240 might see the bullish trend continue to 1250 or more and a dip below 1225 might see it at 1200 or below

Gold Elliott Wave Analysis: Bullish Trend Trapped between 1240 and 1225 Gold's bullish trend has been locked between 1240 and 1225 levels this week. Price needs a strong momentum to get out of the range. Where will the breakout be- upside or downside?