Ella 
Today is the last trading day of the year, and all markets are awash with profit-taking before heading into the New Year’s holiday weekend. The U.S. dollar index has rebounded from 100.80, which shows that the U.S. dollar index made a false breakthrough below 101 yesterday, while the euro has experienced profit-taking and is near 1.1139, unable to rise to the expected target of 1.12.
EUR/JPY continues to be weak, in the 159-156 range, while USD/JPY appears to be stabilizing above 140-141 and may soon rise to 142-143 in the short term. Resistance for the Australian dollar at 0.69 appears strong. The pound failed to maintain its upward trend above 1.28 and some profit-taking also occurred. USD/CNY is close to our mentioned target of 7.09. Need to see if there is a pullback from this level to 7.05. USD/INR fell sharply and may test 88-87 before the decline pauses. FX forwards USD/IDR fell sharply following a higher close in the OTC market yesterday.
We expect USD/USD to recover from 83.10 to 83.20 or higher today. After testing 92.66 upwards, EUR/IDR fell again close to 92-91.50.
U.S. Treasury yields and German Bund yields have rebounded. A consolidation may occur in the short term. However, strong resistance will emerge to halt the upside and keep the overall downward trend intact. The 10-year and 5-year Treasury notes have been rising over the past few days. There is room for further gains before the overall downtrend resumes.
There is room for the Dow and Nifty to test key resistance levels before consolidating lower. The DAX index and the Nikkei index showed range fluctuations. The Shanghai Composite Index is expected to rise close to 3,000 points.
The market is in turmoil at the end of the year and crude oil prices are falling. Red Sea shipping tensions, a drop in U.S. crude oil reserves reported by the U.S. Energy Information Administration (EIA) on Thursday and Angola’s announcement to withdraw from the OPEC+ organization have all dragged down crude oil prices. Gold prices fell amid strong resistance at $2,100. Silver prices have fallen to the lower edge of the shock range. We need to wait and see whether silver prices will fall below the lower edge of the range. Copper prices fell back to the 3.95-3.85 range. Natural gas appears to be on an uncertain trajectory.
