Copper

Those considering buying the break may want to look at copper’s lousy track record when it’s been this overbought on the four hourly chart in the past.

Gold, silver and copper all rally as US dollar drops despite hot inflation, with base metals finding additional boost from optimism about Chinese demand. Silver analysis suggests the grey metal could be in for more gains, while gold analysis point to a new record high.

Traders were their most bearish on the US dollar against all currencies in four months, despite the Fed's attempt to push back on multipole rate cuts this year.

AUD/USD could be vulnerable to more selling pressure amidst soft inflation data and ongoing weakness in Copper prices

Welcome to Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this edition of Technical Tuesday, we will analyse the S&P 500, copper and EUR/USD.

Ahead of key central bank decisions, markets associated with China doing relatively well following news that top leaders in China indicated more support for the real estate sector. We have seen a big move in copper and other metal prices, with crude oil, yuan and Aussie all also pushing higher. So, in this edition of Technical Tuesday we will provide analysis on the AUD/USD outlook, as well as the USD/CNH and copper.

Copper is benefiting from a weaker US dollar and China re-opening

The correlation coefficient between Copper and USD/CNH is -0.83. As long as this correlation is below -0.80, USD/CNH could be used as a proxy for copper.

Bearish engulfing candle points to even weaker prices...

As long as the correlation holds, traders who don’t have access to trade copper can use USD/CHF as a proxy.

Fears over a recession continues to drive financial markets, with commodities feeling the heat

Everything you need to know about the current economic and monetary policy environment, and what it all means for financial markets

With more manufacturing due out later in the week, traders need to watch Dr Copper to help gauge the health of the economy. If copper continues its move lower, watch for AUD/USD to move lower with it!

The Federal Reserve (Fed) is the central bank of the United States and operates under a dual mandate to effectively promote the goals of maximum employment while maintaining price stability.

Weakness in China, stagflation across the world and rising prices hurt demand

Technical analysis on some of the most interesting markets right now

More than 2 years into the pandemic and Covid is still roiling financial markets.