FundamentalOverview

Copper got stuckin a consolidation just above a key support zone as the market failed to rallyon the recent PBoC’s rate cuts. Today, we got the newsthat China is looking to approve a fresh fiscal package next week worth over 10trillion yuan and that it’s expected to be bolstered further if Trump wins theUS election. Copper spiked into the top of the recent range but couldn’t breakthrough yet. Will we get the breakout?

CopperTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that copper consolidated around the key 4.32 support zone where we have also the 61.8% Fibonacci retracement level for confluence. This is where the buyers are steppingin to position for a rally into a new high. The sellers, on the other hand,will want to see the price breaking below the 4.32 support to start targeting newlows.

Copper TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have a strong resistance zone around the 4.43 level where the pricegot rejected from several times in the past weeks. The buyers will want to seethe price breaking higher to increase the bullish bets into new highs, whilethe sellers will likely keep on leaning on the resistance to position for thebreak below the 4.32 support zone.

Copper TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee more clearly the resistance zone with the spike today following the news ofChina mulling approving a fresh fiscal package next week. There’s not much wecan add here as the price action remains confined in the range between the 4.43resistance and the 4.32 support. A break on either side should lead to a moresustained trend. The red lines define the average daily range for today.

UpcomingCatalysts

Today we have the US Job Openings and the US Consumer Confidence report.Tomorrow, we get the US ADP and the US GDP. On Thursday, we have the US PCE,the US Jobless Claims and the US Employment Cost Index data. Finally, onFriday, we conclude the week with the US NFP and the US ISM Manufacturing PMI.