Copper Technical Analysis – We are approaching a key resistance zone

Fundamental
Overview

Last week, copper had a great performance following the easing in trade war
fears. In fact, we tariffs on Canada, Mexico and China weighed on the market
initially but as we got the pause in tariffs for Canada and Mexico following
positive talks, the market bounced back strongly.

The positive sentiment continued throughout the week as China went with
just a very soft retaliation against the US tariffs suggesting that there is no
interest in a trade war.

Copper
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that copper is now approaching the key 4.69 resistance. This is where we can expect the
sellers to step in with a defined risk above the resistance to position for a
pullback into the major trendline. The buyers, on the other hand,
will want to see the price breaking higher to increase the bullish bets into
the 5.17 level next.

Copper Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have a minor upward trendline defining the current bullish momentum
on this timeframe. The buyers will likely continue to lean on it to push into
new highs, while the sellers will look for a break lower to increase the
bearish bets into the major trendline.

Copper Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, there’s
not much we can add here as the buyers will look for a bounce on the trendline,
while the sellers will look for a break. The red lines define the average daily range for today.

Upcoming
Catalysts

Tomorrow, we have Fed Chair Powell speaking. On Wednesday, we
get the US CPI report. On Thursday, we have the US PPI and the latest US
Jobless Claims figures. On Friday, we conclude with the US Retail Sales data.

This article was written by Giuseppe Dellamotta at www.forexlive.com.