COPPER hits new one-year high on strong dollar / demand concerns on US- China trade conflict
Copper hit new one-year low at $2.6720 on Thursday, as fresh acceleration lower ended five-day consolidation and signaled continuation of larger downtrend from $3.3140 (07 June high).
Strong dollar and rising concerns about demand, regarding persisting trade tensions between US and China (China is metal’s biggest consumer) keep copper’s price under strong pressure and sparked the latest fall.
Steep fall from $3.32 double top (weekly chart) has so far retraced nearly 50% of larger $1.9360/$3.3200 (Jan 2016/Dec 2017 uptrend) and so far does not show signs of fatigue, despite being in red for the sixth straight week.
Bears could extend to Fibo 50% support at $2.6280, before taking a breather on profit-taking and oversold techs.
Falling 10SMA which tracks the fall since mid-June, marks solid resistance at $2.7784.
Res: 2.7150; 2.7345; 2.7585; 2.7784
Sup: 2.6720; 2.6585; 2.6280; 2.6000