Copper Technical Analysis | Forexlive

Copper rallied yesterday
following the Fed’s pivot as the market is now hoping for the
central banks to start easing their momentary policies and avoid a global hard
landing. Moreover, the Chinese deflation could trigger a stronger reaction
from the PBoC with bigger rate cuts to stimulate growth and ultimately lead to
higher Copper prices.

Copper Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Copper bounced
on the 61.8% Fibonacci retracement level
near the upward trendline and now
eyes the key swing level at 3.90. A break above the level should give the
buyers more conviction for an extension into the next resistance at 4.03.
The sellers, on the other hand, are likely to step in around the 3.90 level to
position for a drop back into the upward trendline.

Copper Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that Copper is
breaking above the recent strong resistance around the 3.86 level. This should
open the door for further upside into the key 3.90 level, but a pullback cannot
be ruled out.

Copper Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more closely
the current price action with the price breaking above the resistance zone. We
can see that we have a minor upward trendline with the 21 moving average for confluence where
the buyers could lean onto in case the price pulls back. The sellers, on the
other hand, will want to see the price breaking below the trendline to pile in
and target a drop into the major trendline around the 3.77 level.

Upcoming Events

Today we will see the latest US Retail Sales and
Jobless Claims figures, while tomorrow we conclude the week with the US PMIs.
Weak data might weigh on Copper as some recessionary fears could return, while
strong figures could still give the market hopes for a soft landing and boost
prices.