Copper price slumped on Wednesday (down 1.43% since Asian opening and ahead of US session). The metal extends weakness into second straight day on threats of escalation of US/China trade conflict that would hurt economic growth and reduced demand. Fresh negative signals on China's threats to use rare earth minerals as a reaction in trade war pushed metal's price sharply lower. In the situation that the US is imposing tariffs and China retaliates by signals of possible ban on the export of rare earths, there are little chances for any upside action, but rather turning focus fully to the downside. Fresh weakness that emerged after falling 10SMA capped recovery, is on track to fully retrace three-day recovery from $2.6535 (23 May low, the lowest since mid-Jan), with break of $2.6535 pivot to open strong support at $2.6251 (200WMA) and look for full retracement of $2.5420/2.9933 (3 Jan / 17 Apr rally). Firmly bearish daily studies add to negative sentiment on bearish fundamentals, Falling 10SMA ($2.7048) continues to track the downtrend and marks solid resistance which is expected to cap potential upticks.

Res: 2.6870; 2.6965; 2.7046; 2.7155
Sup: 2.6575; 2.6535; 2.6251; 2.6155


The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD extends its gains toward 1.1300 after the dovish Fed decision

EUR/USD has extended its gains after the Fed opened the door to cutting interest rates, stating that uncertainties have increased. Markets are awaiting EU leaders to divvy up top jobs.


GBP/USD falls after the dovish BOE statement

GBP/USD retreats below 1.2700. after the BOE downgraded Q2 forecasts, noting downside risks have increased. Boris Johnson won the fourth round of the Conservative Contest in which Sajid Javid was eliminated.


USD/JPY: Remains vulnerable, bears likely to target levels below 107.00 handle

The USD/JPY pair finally broke down of its recent consolidative trading range, held over the past one week or so and tumbled to its lowest level since the early-Jan. flash crash. 


FOMC: Prelude to a rate cut?

The Federal Reserve added little new to its policy prescript in Wednesday’s FOMC statement and economic projections and with the anticipation for a July rate cut long priced into market levels the reaction was decidedly uninvolved.

Read more

Gold eases from multi-year tops, still well bid near $1380 level

Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.

Gold News