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Copper is ready to start growing

Olymp Trade

Copper continues to consolidate in the expanding triangle, having gone through a local fall of 3.6% since the beginning of the week. Local support was found at $2.65 and currently the price is retesting it. A strong daily level of $2.62 at the lower edge of the triangle should stop the bears in case of a further decline. After that, its price is expected to return to $2.71 and move higher, up to $2.75 within the current figure.

On Friday, the market is looking forward to getting the US employment data. Nonfarm Payrolls and the unemployment rate can provide preconditions for the Fed to decide on a change in the interest rate on July 31. The market is already 100% sure of the change, but the main intrigue is the size of the decline. If Friday's NFP come out much worse than expected, the likelihood of a key rate reduction by 50 basis points will increase. Monetary policy easing will directly affect the entire market, including the metal market.

A two-week strike at Chuquicamata mine continues to provide support for copper price. The Chilean National Copper Commission (Codelco) has postponed the full resumption of production at the mine’s smelter again. The company is expected to fully restore its production capacity only in mid-August.

Olymp Trade Review

Source: https://olymptrade.com/
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