12.23 Technical Scan: The Four Major Assets Show Divergent Trends, Traders Need to Focus on Key Price Levels

As the Christmas holiday approaches, market trading remains light but opportunities emerge. This week’s economic data releases, including the US Q3 actual GDP, October durable goods orders, November industrial production, and Q3 core PCE price index, will be focal points for investors. Federal Reserve Board member Milan issued a warning regarding next year’s policy: if the pace of rate cuts halts, the risk of recession will increase accordingly. On the technical side, the VIX fear index has fallen sharply by 5.5%, hitting a new multi-year low, and the three major US stock indices have risen for the third consecutive day, suggesting market risk appetite may continue to rise.

US Dollar Index: Key support at 98.0 faces testing

The previous trading day saw the US Dollar Index decline by 0.48%, reaching a low of 98.19, ending a three-day rally. Market focus has shifted to the medium-term support at 98.0—if this level is broken convincingly, downside space will open.

Short-term rebound scenario: If the US Dollar Index rises above 98.8, further challenge of the 100 level becomes highly probable.

Downside risk: After breaking below 98.0, the next focus shifts to the 95.2 level, where a further confirmation of a bearish trend is expected.

Technical support levels: 98.0, 96.5, 95.2 | Resistance levels: 99.0, 100.0, 101.4

Gold Technical Analysis: Upward momentum remains, $4,500 within reach

Gold gained 0.66% in the last trading session, with a high of $4,497 during the day, just a step away from the $4,500 mark. Notably, during this rally, gold formed higher highs again, signaling strong momentum.

Support confirmation is crucial: If gold holds above the $4,400 support level, a rebound toward $4,500 is likely, with the possibility of testing $4,620. From a medium-term perspective, the overall upward trend may extend into late January next year.

Technical support levels: 4400, 4300, 4220 | Resistance levels: 4500, 4620, 4770

WTI Crude Oil: Momentum strengthens, breaking through 59.0 as a turning point

The previous trading day saw WTI crude oil rise by 2.49%, reaching a high of $59.13. The AO indicator shows positive signals—upward momentum is building, suggesting that the downtrend since mid-June may face a correction.

Breakout levels determine direction: If WTI can break above and stabilize at $59.0, rebound strength will further increase, with levels of $61.5 and $64.5 potentially being reached sequentially. Conversely, falling below $57.0 warrants caution for continued decline.

Technical support levels: 57.0, 55.0, 52.0 | Resistance levels: 59.0, 61.5, 64.5

AUD/USD: Optimistic above 0.6600

The AUD/USD rose by 0.7% in the last trading session, reaching a high of 0.6660. Technically, 0.6600 is the upper boundary of the previous range, and the market has rebounded from this level, indicating strong bullish sentiment.

Optimistic outlook: Once AUD/USD stabilizes above 0.6600, the next rebound targets are 0.6700 and even 0.6800. To reverse the upward trend, a decisive break below 0.6600 is necessary.

Technical support levels: 0.6600, 0.6520, 0.6450 | Resistance levels: 0.6700, 0.6800, 0.6920