December 26 Trading Observation: AUD Leads Major Currency Pairs, Multi-Asset Technical Outlook Bright

The major markets are trading lightly during the Christmas holiday season, with market focus shifting to the Federal Reserve’s policy outlook. After three rate cuts this year, the Federal Reserve is closely monitoring employment and inflation trends. Banking institutions expect the Fed to continue adjusting policies in the first half of next year, and long-term US Treasury yields are likely to seek support on the downside. As a result, risk assets face upward momentum.

AUD/USD: Steady Uptrend, AUD Long Positions Are Mainstream

The AUD/USD performed steadily on Friday, closing up 0.02% intraday, with a high around 0.6718. Market traders are currently focused on the battle at the 0.6700 level. Although the medium-term bullish trend for AUD against USD has not reversed, short-term consolidation risks warrant caution.

If the AUD loses the 0.6700 psychological level, it will then face a test of 0.6620; if this level is effectively supported, the medium-term rally for AUD/USD could continue. The upside target is set at 0.6800.

Key Levels: Support (0.6700, 0.6620, 0.6520) | Resistance (0.6750, 0.6800, 0.6900)

EUR/USD: 1.1700 Becomes a Critical Threshold

The EUR/USD rose slightly by 0.04% on Friday, reaching a high of 1.1793, with overall upward momentum remaining orderly. The 1.1700 level has become the dividing line between short-term bulls and bears.

If EUR/USD can hold firmly above 1.1700, it is expected to rebound further and challenge 1.1900 or even push toward the 1.2000 psychological level. Conversely, a break below 1.1700 will trigger a downward test of the 1.1630 level.

Key Levels: Support (1.1700, 1.1630, 1.1500) | Resistance (1.1800, 1.1900, 1.2000)

NZD/USD: Gann Line as a Rebound Reference

The NZD/USD increased by 0.05% on Friday, reaching a high of 0.5841. The currency pair has broken through the Gann 2/1 line at 0.5770, but lacks momentum for further rise in the short term, and a pullback may occur.

If the rebound is resisted at 0.5850, the NZD could fall back to test the Gann line support at 0.5770. If this level holds, the medium-term upward trend may continue, with attention on 0.5900 above.

Key Levels: Support (0.5800, 0.5770, 0.5730) | Resistance (0.5850, 0.5900, 0.6000)

WTI Crude Oil: Rebound Correction Signs Emerge

WTI crude oil rose by 0.09% on Friday, reaching a high of $58.6. Technical indicators show increasing upward momentum, suggesting that the bearish trend since June may face a corrective rebound.

If oil can break through and stabilize above $59.0, the rebound could extend to $61.5 and even $64.5. However, if it falls below support at $57.0, further declines should be guarded against.

Key Levels: Support (57.0, 55.0, 52.0) | Resistance (59.0, 61.5, 64.5)