COPPER
May Copper eased on Tuesday, after strong recovery in past two days hit solid resistance at 2.6395 (daily cloud top / Fibo 38.2% of 2.7675/2.5580 downleg).
Copper price remains supported by supply issues on disruption of production in the biggest mines and is awaiting tomorrow’s decision from Fed for fresh signals.
Stronger dollar on rate hike would make the metal more expensive and possibly lower the demand.
From technical point of view, near-term studies are overall neutral – bullish, while daily studies remain bearishly aligned and downside would remain at risk while the price stays capped by daily cloud top.
Thickening hourly cloud is holding the downside for now (spanned between 2.6147 and 2.5985) break of which would weaken near-term structure and risk retest of daily cloud base at 2.5932 (lower pivot).
Conversely, sustained break above daily cloud would signal extension of recovery leg from 2.5580 and expose targets at 2.6510 (daily Tenkan-sen); 2.6627 (50% of 2.7675/2.5580) and 2.6875/98 trigger (Fibo 61.8% / daily Kijun-sen).
Res: 2.6395; 2.6510; 2.6627; 2.6898
Sup: 2.6147; 2.6000; 2.5985; 2.5932