Copper Reverses Lower
Copper bulls look to have been left empty handed this week with the futures market currently trading back around the weekly open following a reversal lower from earlier highs. News of the US federal court ruling against Trump’s tariffs earlier in the week saw copper price surging higher amidst optimism that reciprocal US trade tariffs would be blocked. However, an appeal from the White House, and subsequent temporary approval of that appeal, has fuelled a reversal in risk sentiment, with copper prices dropping around 5%.
US/China Trade Uncertainty
Alongside uncertainty around the legal status of Trump’s tariffs, copper prices are also being hit by a loss of general optimism around US/China trade talks. Following news earlier in the month that the two sides agreed to a 90-day suspension of tariffs to allow for continued negotiation, there has been no further progress. Indeed, commenting on the talks yesterday, the US treasury secretary noted that talks had stalled. If this current lack of progress continues, and particularly fi we hear of any fresh deterioration in relations, copper prices look vulnerable to a fresh push lower. On the other hand, if we see any breakthrough between the US and China and any sign that talks are back on track, copper prices are likely to move firmly higher on a relief rally in risk assets.
Technical Views
Copper
The latest failure at the 4.8010 level and retest of the broken bull channel means copper prices are vulnerable to a fresh push lower. 4.5785 remains the key support area to watch, with 4.30 the deeper bear target if we do break lower. While this local area of support holds, however, focus is on a further attempt at push back up towards the $5 mark.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.