News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Je6kbxZLX5
  • Gold has fallen to US$ 1,874 - the 76.4% Fibonacci retracement level, before bouncing back slightly. Near-term momentum appears biased towards the downside. Read more: https://www.dailyfx.com/forex/market_alert/2020/09/23/Gold-Silver-Price-Forecast-Key-Supports-Broken-as-US-Dollar-Strengthens.html https://t.co/Y7LJ4O1Is0
  • Gold has fallen to US$ 1,874 - the 76.4% Fibonacci retracement level, before bouncing back slightly. Near-term momentum appears biased towards the downside. Read more: https://www.dailyfx.com/forex/market_alert/2020/09/23/Gold-Silver-Price-Forecast-Key-Supports-Broken-as-US-Dollar-Strengthens.html
  • #USDollar Tracks Shift in Risk Sentiment Despite #Powell Testimony $USD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/09/23/US-Dollar-Tracks-Shift-in-Risk-Sentiment-Despite-Powell-Testimony.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/DsnIMRErgi
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.06% 🇯🇵JPY: -0.08% 🇪🇺EUR: -0.16% 🇬🇧GBP: -0.31% 🇳🇿NZD: -0.55% 🇦🇺AUD: -0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/j02nCOakn0
  • Heads Up:🇩🇪 Markit Manufacturing PMI Flash (SEP) due at 07:30 GMT (15min) Expected: 52.5 Previous: 52.2 https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇩🇪 Markit Services PMI Flash (SEP) due at 07:30 GMT (15min) Expected: 53 Previous: 52.5 https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇩🇪 Markit Composite PMI Flash (SEP) due at 07:30 GMT (15min) Expected: 54.1 Previous: 54.4 https://www.dailyfx.com/economic-calendar#2020-09-23
  • 🇹🇭 Interest Rate Decision Actual: 0.5% Expected: 0.5% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-09-23
  • 🇪🇸 GDP Growth Rate YoY Final (Q2) Actual: -21.5% Expected: -22.1% Previous: -4.2% https://www.dailyfx.com/economic-calendar#2020-09-23
Copper Price Outlook Grim as US-China Trade Talks Hit a Wall

Copper Price Outlook Grim as US-China Trade Talks Hit a Wall

2019-12-02 04:00:00
Ilya Spivak, Head Strategist, APAC
Share:

COPPER PRICE OUTLOOK – Talking Points:

  • Copper prices coiling up for a breakout between key chart barriers
  • US-China trade talks at an impasse over tariffs, Hong Kong turmoil
  • Incoming news-flow might flag ongoing global growth slowdown

Where will markets end 2019? See our Q4 forecasts for currencies, commodities and stock indexes!

Copper prices are coiling up between critical chart barriers, setting the stage for what could be a trend-defining move ahead. Resistance is marked by a downward-sloping barrier capping upside progress since mid-2018. A rising trend line established from early-September lows stands as near-term support.

Breaking higher – with confirmation on a daily close above 2.7610 – opens the door to challenge the 2.8355-8710 chart inflection zone. Alternatively, a breach of support – now at 2.6240 – looks likely to pave the way for a test of the 2.5160-5520 price floor dating back to mid-August of 2018.

Copper Price Outlook Grim as US-China Trade Talks Hit a Wall

Copper price chart created with TradingView

Copper’s recent recovery has tracked an upshift in priced-in 2020 Fed policy outlook. This suggests that hopes for a breakthrough in US-China trade talks and ebbing worries about a “no-deal” Brexit appear to have been the key catalysts at work. Similar moves have appeared in Asia-Pacific and European stocks.

COPPER AT RISK ON US-CHINA TRADE DEAL IMPASSE, GROWTH SLOWDOWN FEARS

That sets the stage for volatility as Beijing and Washington DC struggle to make progress. News-flow over the weekend pointed to a deepening impasse over rolling back tariffs, which China wants in any “phase 1” deal but the US opposes, and the latter’s support for Hong Kong’s pro-democracy protesters.

Against this backdrop, a steady stream of economic data releases – particularly out of the US – may remind investors that the global economy continues to slow. Indeed, the JPMorgan Composite PMI gauge of worldwide manufacturing- and service-sector growth is hitting multi-year lows.

Copper Price Outlook Grim as US-China Trade Talks Hit a Wall

Ominous rhetoric in testimony from ECB President Christine Lagarde at the EU Parliament and policy announcements from the RBA and the BOC may sour the mood further All this bodes ill for cycle-sensitive copper prices, hinting that the looming chart break might favor the downside.

COPPER TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES