
The Fed’s monetary policy statement and interest rate forecast could move the U.S. Dollar and this will have a direct impact on the dollar-denominated copper market. A stronger dollar tends to hurt demand for copper. A weaker dollar could be supportive for copper prices.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through $2.5505 will turn the main trend to down. This is followed by the next main bottom at $2.4350.
A trade through $2.7130 will signal a resumption of the uptrend. This is followed by the November 28 main top at $2.7530. This is the trigger point for a strong rally.
The short-term range is $2.7530 to $2.5505. Its retracement zone at $2.6520 to $2.6755 is resistance.
The intermediate range is $2.4350 to $2.7530. Its retracement zone at $2.5940 to $2.5565 is currently being tested as support. It held before when the market bottomed at $2.5505 on November 30. If it fails, the break could extend into the major 50% level at $2.4250 over the near-term.
Forecast
Based on the current price at $2.6075 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the 50% level at $2.5940.
A sustained move over this level could drive the market into a Gann angle price cluster at $2.6350 to $2.6550. This is followed by $2.6520 to $2.6755 then $2.6930. Additional resistance is $2.7130 and $2.7230. The latter is the last potential support angle before the $2.7530 main top. Needless to say, we could see a labored rally because of all the potential resistance levels.
On the downside, a sustained move under $2.5940 will signal the presence of sellers. This is followed by $2.5565 then $2.5505. The trend will change to down under $2.5505 with the next target $2.5350. This is the trigger point for an acceleration into a major uptrending angle at $2.4770.
Watch the price action and read the order flow at $2.5940 today. Trader reaction to this level will set the tone for the day. Look for volatility at 1900 GMT with the release of the Fed data.
Read more - https://www.goldcruderesearch.com/comex.php
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