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Welcome to your essential weekly market forecast for the last trading week of 2023, beginning December 16th. As the holiday season approaches, expect a noticeable drop in market volume after this week. With recent pivotal monetary policy announcements by four major central banks, the upcoming week features key decisions from the Bank of Japan, Bank of England, and the US Federal Reserve.
Let’s dive into the potential trading opportunities across various instruments, focusing on detailed analyses and Fibonacci extensions to guide your projections.
1. DXY (US Dollar Index)
The DXY exhibits bullish momentum on the monthly frame, with multiple Fibonacci extensions indicating strong resistance around the 113.24 to 113.44 zones. On the weekly chart, the index shows potential for a short-term bearish retracement but remains bullish long-term, targeting upwards of 113.24. Key support at 104.3 should bolster any bearish dips, affirming a bullish continuation upon stability.
Click to unlock deeper insights on how the DXY could impact your trades next week
2. Crude Oil
Crude oil has re-emerged as a tradable entity with bullish divergence clear on the monthly chart. Expect a pivotal zone around $77.56 as a possible target, supported by MACD indicators turning bullish on the weekly frame. Short-term pullbacks are seen as buying opportunities, with potential retracement to $69 being an attractive entry point for a bullish continuation to $77.56.
Click to discover the prime levels to enhance your oil trading strategy
3. EURNZD (Euro vs New Zealand Dollar)
This pair shows an intriguing setup with multiple bullish Fibonacci extensions on the weekly chart pointing towards sustained bullish momentum. The daily chart suggests strong resistance around current levels, with anticipated short-term bearish retracements offering potential entry points for bullish continuation. Key levels to watch are the pullbacks towards more significant support zones.
Click to elevate your trading with actionable steps for EURNZD
4. EURUSD (Euro vs US Dollar)
Euro is exhibiting a corrective phase in its last bearish wave on the daily frame, with potential short-term bullish movements towards 1.06377. The weekly chart highlights the 50% Fibonacci retracement as a strong support zone, suggesting an inverse correlation with the DXY, if the dollar strengthens, EURUSD could weaken further post-correction.
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5. XAUUSD (Gold)
Gold maintains a long-term bullish outlook despite recent bearish fades in momentum. Key support is found at $2483 on the monthly frame, with daily indicators suggesting a bearish divergence that could lead to a short-term pullback to around $2587. The ultimate bearish target on shorter time frames aligns around $2587 to $2570, with potential resumptions of the bearish trend from key resistance zones.
Click to maximize your gold trading with Nikkhil’s advanced analysis
As we gear up for the last active trading week of the year, these detailed insights and projected levels should aid in your trading decisions.
Please consider the potential impacts of central bank decisions and holiday-thinned markets in your strategies.
Wishing you a profitable trading week ahead!
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