Started by forex4you, Sep 20, 2023, 05:27 pm
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Copper continues to tradewithin a major triangle as the uncertainty around the global economy remainshigh. In fact, on one hand we have the Chinese trying to stimulate the economywith the recent economic indicators showing positive signs, while on the otherhand, we have the other major economies weakening due to restrictive monetarypolicies and inflationary pressures. As long as the picture remains so mixed,we are likely to continue to see a rangebound price action.
Copper Technical Analysis -Daily Timeframe
On the daily chart, we can see that Coppercontinues to trade within the symmetrical triangle with theprice recently trying some downside breakouts. There is still lots ofuncertainty around the global economy, so we are likely to keep on seeing thischoppy price action until something big happens that points clearly into acertain direction. For now, traders should keep a close eye on this pattern asa breakout might lead to a big move.
Copper Technical Analysis -4 hour Timeframe
On the 4 hour chart, we can see that the pricerecently bounced on the lower bound of the triangle and tried a rally into theupper bound. The price failed to reach it completely and sold off into thelower bound again. To avoid fakeouts, we have another trendlineconnecting the most recent failed breakouts. If the price falls below thetrendline, then we are likely to get a real breakout and the sellers shouldpile in aggressively to ride the big bearish wave.
Copper Technical Analysis -1 hour Timeframe
On the 1 hour chart, we can see that theprice bounced on the trendline and it's now approaching the downward trendlinewhere we have also the confluence withthe 38.2% Fibonacciretracement level. This is where we can expect thesellers to pile in with a defined risk above the trendline to try again anotherbreakout. The buyers, on the other hand, will want to see the price breakingabove the trendline to position for a rally into the upper bound of thetriangle.
This week has a few important economic releases that canhave an impact on Copper. Today, the Fed is expected to keep rates unchangedwith the market focusing more on the Dot Plot and Powell's press conference,where he's likely to reaffirm their data dependency. Tomorrow, we will get thelatest US Jobless Claims report and much worse than expected data should weighon Copper while better than expected figures are likely to keep it supported.Finally on Friday we conclude the week with the PMIs data for many major economieslike the US, Eurozone and the UK. Again, weak data is likely to send themarkets into risk off and lead to weakness in Copper, while strong data shouldprovide some relief.
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