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FxWirePro: Copper declines as support breaks on Chinese economic concern

Not a day for Copper bulls,

Technically speaking,

  • Bulls have sincerely tried to fend off Copper bears as it formed a bullish Doji candle in the four hourly charts, but that failed to support price.
  • Since the support failed, the copper price is sharply moving lower.
  • The bearish engulfing formed earlier this week in 4-hourly chart still weighs on the dollar.

Global economic growth concern is keeping the lid on prices,

  • Despite the possibility that a trade deal between China and the United States could soon be reached, Copper is moving lower, as today’s industrial production numbers joined a long list of Chinese data evidencing slowdown in world’s largest consumer of copper.
  • According to today’s release, China's industrial output growth slowed to a 17-year low in the first two months of the year, adding to concerns about the world's second-biggest economy.
  • Data released earlier this month showed Chinese service sector expansion has slowed significantly, at the beginning of the year, while the manufacturing sector remains in contraction territory.

COMEX copper is down more than a percent for the day. It is currently trading at $2.902 per pound, trying to find support around the psychological area.

  • Market Data
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