- Copper is extending weakness after break below 200-DMA at 3.0317.
- The pair has shown a decisive breach at channel base support in the previous week's trade raising scope for further weakness.
- Price action is down 0.79% on the day, with the day's high capped at 3.00 handle.
- The pair has slipped below 23.6% Fib retrace of 1.936 to 3.320 rally and has hit lowest since Oct 3rd.
- Technical indicators are highly bearish and we see scope for test of 38.2% Fib at 2.791.
- On the flipside, retrace and close above 200-DMA invalidates bearish bias.
Support levels - 2.890 (Sept 22 low), 2.873 (Aug 15 low), 2.791 (38.2% Fib)
Resistance levels - 3.0 (23.6% Fib), 3.014 (5-DMA), 3.031 (200-DMA)
Recommendation: Good to go short on rallies around 2.960/975, SL: 3.0, TP: 2.90/ 2.890/ 2.875/ 2.790
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
