Copper also continues to follow yesterday’s roadmap. As a reminder:
“(…) At the moment, price is still trading inside the consolidation formed by Tuesday’s wide bullish candle (632-656), which suggests that a test of the lower boundary of the pattern may be just around the corner.(…)”
From today’s perspective, we see that sellers successfully tested the lower boundary of the mentioned consolidation, but Thursday’s session still finished inside the range, which means that yesterday’s tiny breakdown was invalidated.
Therefore, we believe that only a daily close below 632 would officially trigger the next bearish leg and reopen the path toward yesterday’s downside targets.
Adding to the bearish picture, both CCI and Stochastic generated fresh daily sell signals, giving bears additional technical arguments.
Today’s Takeaways
Dollar (DX.F)
- 101.21 is important.
- As long as the dollar holds above this level on a daily closing basis, the bullish breakout remains valid.
- A move above the recent highs keeps 102.00-102.10 and 102.41-102.50 in focus.
- A daily close below 101.21 would weaken a bit the bullish scenario.
Palladium (PA.F)
- The 1255-1262 resistance zone & (1280) lower line of the green rising channel is key.
- As long as price remains below them, sellers stay in control.
- A daily close back above the broken channel would be the first sign that bearish momentum is fading.
Copper (HG.F)
- I will watch 632.
- A daily close below this level confirms the breakdown and opens the way toward the next downside targets.
- The next important support sits near 622.50, at the lower boundary of the green rising channel.
Anna