Copper – Recovery attempts face strong headwinds from 10SMA barrier

Slobodan Drvenica Windsor Brokers

COPPER

Copper extends recovery from two-week low at $3.2115 on Thursday, as softer dollar and positive fundamentals support the metal's price. Recovery action today stays capped by the base of 4-hr cloud which is narrowing and twists tomorrow at $3.2570. This may attract for further recovery on sustained break above initial barriers at $3.2529/47 (Fibo 38.2% of $3.3200/$3.2115 pullback/10SMA). Prevailing bullish tone on daily studies keeps bulls in play for further recovery, with the action being underpinned by daily slow stochastic emerging from oversold territory. However, repeated strong upside rejections on Wed/Tue weigh and the downside would remain vulnerable on another failure to clearly break above 10SMA pivot. Bearish scenario sees negative signal on violation of strong supports at $3.2154/15 (rising 20SMA/correction low) which could signal fresh extension of corrective leg from $3.3200 peak.

Res: 3.2547; 3.2730; 3.2786; 3.2970
Sup: 3.2320; 3.2154; 3.2115; 3.2000

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.