The Federal Reserve's liquidity injection begins a new cycle: a panoramic scan of the trends in USD, AUD, gold, and Ethereum

Has the market turning point arrived? The Fed’s move changes the game

Last week, the Federal Reserve officially halted QT(, and immediately launched the Reserve Management Purchase)RMP( plan, which is expected to inject $40 billion in liquidity over the next 30 days. Although technically this is not a full QE, it essentially continues to release cash into the financial markets. Major global bond yields are rising, and signals of re-inflation are becoming increasingly clear. This shift is crucial for the future direction of various assets.

The US Dollar Index faces a critical decision, 97.9 is the line of life and death

On Thursday)December 11(, the US Dollar Index fell 0.3%, reaching a low of 98.13 intraday, just a hair away from 98.0. From a technical perspective, since November 21, the dollar has been weakening continuously, with successive lower lows clearly indicating that the downtrend remains intact.

In the short term, if the dollar stabilizes above 98.0, it may continue to fluctuate within a broad range or even rebound to test the 100 level. But this depends on holding the mid-term boundary at 97.9. Once it effectively breaks below 97.9, the downside space will be fully opened, and attention should turn to support levels at 97.6 and even 95.2.

Support levels: 97.9, 97.6, 95.2
Resistance levels: 99.0, 99.5, 100.0

The Australian dollar is strong, benefiting the AUD/TWD exchange rate

In the past 15 trading days, AUD/USD has only fallen 3 days, showing unwavering bullish sentiment. The exchange rate has stabilized around 0.6600, and the most likely next move is upward.

If AUD/USD can hold above 0.6600, the rebound target should be set at 0.6700 or even 0.6800. Conversely, if it falls below 0.6600, caution is needed for a pullback to 0.6520 or even 0.6450. As the Australian dollar strengthens, the AUD/TWD exchange rate will also be positively influenced.

Support levels: 0.6600, 0.6520, 0.6450
Resistance levels: 0.6700, 0.6750, 0.6800

Gold momentum is soaring, 4200 becomes a key pivot

Gold surged 1.22% on Thursday)December 11(, reaching $4,285.9, hitting a near one-and-a-half-month high and breaking through the upper boundary of the 3890-4225 range. The momentum indicator)AO( shows increasing bullish strength, making a challenge to the previous high of $4,381 highly probable.

On the daily chart, if gold can stabilize above $4,200, it is likely to challenge $4,381. Conversely, if it falls below $4,200, caution is needed for a retest of support around $3,900.

Support levels: 4200, 4130, 4050
Resistance levels: 4300, 4381, 4440

Ethereum’s time window has arrived, 3400 is the key dividing line

Ethereum fell 2.64% on Thursday)December 11(, dropping to $3,145.5. The current ETH price has fallen back below the $3,000 mark and reached a critical timing point, with the market facing a decision.

According to the latest data, Ethereum is currently quoted at 2.95K USD, with a 24-hour decline of -0.34%. In the short term, if ETH cannot rebound and regain above 3400, there is a risk of testing the 3000 level again. Treating $3400 as the short-term support/resistance boundary is a reasonable trading logic.

Support levels: 3200, 3000, 2675
Resistance levels: 3300, 3400, 3600

Summary

The Fed’s liquidity injection is changing the market landscape. Weak dollar, strong Australian dollar, rising gold, and volatile Ethereum— the interlinked effects among assets are worth close attention. Currently, the four most critical levels to watch are $3400, 97.9, 0.6600, and $4200.