Recently, there have been frequent actions in the global financial and political fields. After the Federal Reserve cut interest rates by 25 basis points, the dot plot shows an adjustment in the frequency and magnitude of interest rate cuts next year. Powell expressed caution, while other central banks have also taken measures, such as the Bank of Japan remaining inactive, the Bank of England not cutting interest rates, the Swedish and Philippine central banks cutting interest rates, the European Central Bank expected to further cut interest rates, while the People's Bank of China kept interest rates unchanged. In terms of global political situation, the Canadian Finance Minister has resigned, the German Chancellor is facing a crisis of parliamentary trust and early elections, the leader of the ruling party in South Korea has resigned and related personnel have been investigated, the French National Assembly has passed a temporary budget bill, and the Prime Minister of Kyrgyzstan has resigned. The United States has funding plans and progress in ceasefire negotiations. Looking ahead to this week, due to limited data on the Christmas holiday, the US Conference Board's Consumer Confidence Index and durable goods orders are receiving attention. Although Japan does not have important data, the subsequent impact of central bank policies is still ongoing. Investors are paying attention to developments related to the Japanese yen, including Tokyo CPI data and central bank meeting minutes, which will continue to have an impact on the global economic and political landscape and are interrelated.

The US Dollar Index

In terms of the US dollar index, the overall price of the US dollar index showed a downward trend last Friday. The highest price of the day rose to 108.524, the lowest was 107.558, and closed at 107.797. Looking back at the performance of the US dollar index last Friday, it fluctuated during the morning session, then rose and fell before the European session, and then continued to weaken until the closing position. From the weekly chart, the price still ended in a strong bullish trend, and the overall trend is still towards further upward movement. From the daily level, we are currently focusing on the 106.90 area support. If the price fell below last Friday within four hours, we will first pay attention to the 4-hour resistance pressure test daily support in the short term, and then focus on whether the price can further rise after reaching the daily support later.

Short selling in the 108.00-10 range of the US Composite Index, defending against $5, with a target of 107.40-106.90

【EURUSD】

In terms of EURUSD, the overall price of EURUSD showed an upward trend last Friday. The lowest price of the day fell to 1.0342, the highest rose to 1.0447, and closed at 1.0428. Looking back at the performance of the European and American markets last Friday, prices first fluctuated in the short term during the morning session, then bottomed out and rebounded before the European session, and continued to show strong performance. They broke through the four hour resistance level in the US session and finally ended with a strong bullish trend. Currently, there is a divergence on the European and American daily lines, and we will continue to cautiously chase short positions. In the short term, we will temporarily focus on the gains and losses of the daily resistance of 1.0480, and in the four hour period, we will temporarily focus on the support range of 1.0400-10. After the price is in place, we will first focus on further upward movement, and then focus on whether the price can break through strongly when it reaches the daily resistance.

Buy long in the EUR/USD 1.0400-10 range, defend 40 points, target 1.0480