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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
  • The pro-risk Australian Dollar may extend gains after the record miss in US jobs data, amplifying dovish rhetoric from the Federal Reserve and keeping the Dow Jones and S&P 500 intact. Get your market update from @ddubrovskyFX here: https://t.co/yf8mPX3O3W https://t.co/uCCmjaxUhF
  • Who else is keeping close tabs on Dogecoin $DOGE this weekend? All eyes on Elon Musk @elonmusk, the proverbial 'Dogefather,' and his Saturday Night Live @nbcsnl performance kicking off at 11:30PM ET. The #crypto is already looking nice and perky following that trendline break! https://t.co/nrQsnlUqWj https://t.co/4lOz6NLQTG
  • There is some very interesting event risk over the opening half of this coming week of trade. It starts with Elon Musk hosting SNL tonight for Dogecoin traders and moves into US inflation data to as means to stir the ongoing Fed debate and Dollar https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/LXhjv7ToWC
  • It was a big week for Gold bulls and Gold prices broke out to fresh two-month-highs, finally taking-out the 1800 level along the way. Get your market update from @JStanleyFX here: https://t.co/D222Ni37Dv https://t.co/KcMYyx3Ro4
Copper Prices Poised to Extend Gains Amid Global Manufacturing Rebound

Copper Prices Poised to Extend Gains Amid Global Manufacturing Rebound

Daniel Moss, Analyst

Copper Prices, XCU/USD, Commodities – Talking Points:

  • Copper prices appear poised to climb higher amid a positive fundamental backdrop and bullish technical setups.
  • Symmetrical Triangle break could fuel push to multi-year highs.

Copper’s 56% surge from the March low is showing little signs of abating, after the price of the ductile metal soared to a fresh two-year high (3.0945) at the beginning of the month on the back of rebounding global manufacturing activity and soaring Chinese demand.

With price now breaking out of several bullish continuation patterns on multiple timeframes, copper appears poised to continue its recent run higher as a strengthening fundamental backdrop begins to support positive price developments.

Copper Futures (HG) Monthly Chart – Symmetrical Triangle Break Ominous for Bears

Copper Prices Poised to Extend Gains Amid Global Manufacturing Rebound

Copper Futures (HG) monthly chart created using TradingView

From a technical perspective, copper prices appear poised to climb higher after breaking above Symmetrical Triangle resistance.

However, the development of RSI hints at fading bullish momentum, as the oscillator struggles to break above 60 and the downtrend extending from the 2006 extremes.

Inability to close above key resistance at the 38.2% Fibonacci (3.1040) could generate a pullback towards the January 2020 high (2.8860), with a close below probably invalidating the topside break of Symmetrical Triangle consolidation.

Nevertheless, price continues to track above the 21-, 50- and 200-month moving averages, which suggests that the path of least resistance remains to the topside.

Therefore, if support at the psychologically pivotal 3.00 level remains intact further gains look more than likely.

Copper Futures (HG) Weekly Chart – ‘Golden Cross’ Implies Swelling Bullish Momentum

Copper Prices Poised to Extend Gains Amid Global Manufacturing Rebound

Copper Futures (HG) weekly chart created using TradingView

Zooming into a weekly chart reinforces the bullish tilt seen on the monthly timeframe, as the RSI and MACD indicators soar to their highest levels since August 2017.

A bullish ‘golden cross’ formation – the ‘faster’ 21-WMA crossing above the ‘slower’ 50-WMA – is indicative of swelling bullish momentum that may ultimately generate a sustained push above resistance at the 38.2% Fibonacci (3.1040).

A weekly close above key Fibonacci resistance would probably signal a resumption of the primary uptrend and could bring the 2017 high (3.3320) into play.

Conversely, if price breaks below confluent support at the 2019 high (2.9955) and yearly uptrend extended declines may be in the offing, with a break back below the psychologically imposing 3.00 level potentially inspiring a correction back to the sentiment-defining 200-WMA (2.7270).

Copper Futures (HG) Daily Chart – Long-Term Trend Break Hints at Further Gains

Copper Prices Poised to Extend Gains Amid Global Manufacturing Rebound

Copper Futures (HG) daily chart created using TradingView

That being said, scrolling into a lower timeframe indicates that copper prices may continue to track higher after surging away from the 21-day moving average (2.9515) on September 4.

The topside break of the Bull Flag continuation pattern in mid-August suggests that the ductile metal could push to its highest levels in seven years, with the implied measured move indicating price could climb above the 2017 high (3.32) in the coming weeks.

Moreover, the RSI and MACD indicators appear to be trending higher and could inspire further buying in the coming days if price clambers above the yearly high (3.0945).

A daily close above the 38.2% Fibonacci (3.1040) is needed to validate bullish potential and carve a path for copper to test the 100% Fibonacci (3.2310), with a daily close above the 3.25 level opening the door to fulfil the bullish continuation pattern’s implied measured move (3.3655).

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

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

DISCLOSURES