December 19 Trading Opportunities Overview: Euro/USD at a critical point, gold breakout imminent, Micron Technology continues its strong momentum

Market Background: Fundamentals Support Rising Risk Appetite

This week, the market has received multiple positive signals. Micron Technology’s earnings exceeded expectations, and strong demand for memory chips has alleviated concerns about a slowdown in data center investments; the US November CPI unexpectedly declined, paving the way for the Federal Reserve to cut interest rates further; the Bank of Japan’s rate hike has been implemented, and global risk sentiment is expected to moderate and recover. These factors collectively form the basis for recent market upward movement.

Gold: Breaking through $4350 becomes key, targeting $4400

Gold closed with a doji star on Friday, indicating a potential turning point in market sentiment. The price is currently consolidating above $4300 but faces resistance at the $4350 level.

The direction of the breakout is crucial: if gold successfully stays above $4350, it is expected to continue upward, challenging the previous high of $4381 and further pushing toward the $4400 level. Conversely, if the rebound is blocked at $4350, a pullback to the support at $4220 is necessary. A deeper downside test is at $4160.

Technical levels reference:

• Support: 4300, 4220, 4160
• Resistance: 4380, 4400, 4500

EUR/USD: Critical threshold, downside risk significantly increased

EUR/USD maintained above 1.1700 on Friday but has declined for three consecutive days, signaling market divergence. The 1.1700 level precisely marks the short-term bull-bear dividing line for EUR/USD, and the AO momentum indicator shows downside momentum gradually strengthening, warning investors to be alert to the next risk.

If EUR/USD effectively breaks below 1.1700, downside space opens up, with the next targets at 1.1630 and even 1.1500. However, if EUR/USD can hold steady above 1.1700 and find support at 1.1630, the medium-term target may still point toward 1.2000.

Technical levels reference:

• Support: 1.1700, 1.1630, 1.1500
• Resistance: 1.1800, 1.1900, 1.2000

USD/JPY: Fluctuating between 155-157, balanced forces

USD/JPY rose 0.38% on Friday, reaching a high of 156.44, marking a new high in over a week. Notably, 155.0 is not only an important support level but also a key line since the mid-May high, indicating that the short-term downtrend has eased, but the price continues to consolidate between 155 and 157.

If USD/JPY stabilizes above 155.0, upward momentum may further release, with potential challenges at 156.20 and even higher at 158.0. However, if it effectively breaks below 154.50, downside risks increase, likely testing the 152.0 level.

Technical levels reference:

• Support: 155.0, 152.0, 150.0
• Resistance: 156.20, 158.0, 160.0

Micron Technology: Uptrend intact with room for further gains

Micron Technology closed Thursday up by 10.21%, despite some pullback from highs, with a maximum of $263.65. More importantly, the stock remains in an ongoing uptrend, and the overnight breakout signals suggest a possible imminent breakout from the previous range-bound pattern. Short-term upside potential looks promising.

If Micron can stabilize above $245.0, it is expected to continue rebounding toward $280. However, investors should also watch for a risk signal: if it falls below $220, the uptrend may reverse, requiring immediate strategy adjustment.

Technical levels reference:

• Support: 245, 220, 200
• Resistance: 264, 280, 300

Overall Reminder

Among the four major assets, EUR/USD is at a decision point, gold has a clear breakout opportunity, USD/JPY remains range-bound, and Micron Technology continues its upward trend. Investors should consider their risk tolerance and monitor the key levels mentioned above.