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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Copper Prices Hit 3 Month Low on Chinese Metals Fraud

Copper Prices Hit 3 Month Low on Chinese Metals Fraud

Jeremy Wagner, CEWA-M, Kara Dailey,
Copper Prices Hit 3 Month Low on Chinese Metals Fraud

Talking Points:

  • Fraudulent Metals Documents Reported at 10 Billion USD
  • Price per pound falls 8%
  • Copper prices hit 3 month low nearing support

The State Administration of Foreign Exchange (SAFE) participated in a joint press conference today to review China’s foreign exchange management policy reforms. During the pivotal Q&A portion, Deputy Director Wu Ruilin confirmed that upon inspection of several regional areas including the Qingdao Port 10 billion USD worth of documents were found to be falsified in an effort to reuse property.

As the world’s 7th busiest port, Qingdao's metals financing fraud has created macroeconomic disturbances. Copper prices have fallen from 3.293 per pound in July to today’s price of 3.019. This equates to an 8% loss in value over 3 months.

On the day Copper is trading near 3 month lows. From a technical perspective, there is a wave relationship where wave C equals wave A (which is common), red channel support, and previous horizontal support near 3.01 – 3.02.

Technically speaking, prices should bounce from this strong level of support. If prices do bounce, the next level of resistance is near 3.17. However, a break below will indicate just how weak prices could become. A break lower could eventually target the March 2014 low near 2.88.

Daily Copper Price Chart

DailyFx Copper Price Chart.

Graph Created By Jeremy Wagner Using MarketScope2.0

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

DISCLOSURES