13 Jan 2015
Copper slips to fresh 5-Year Lows, tanks nearly 3%
FXStreet (Mumbai) - Copper futures on Comex slipped further during the European session, posting a new five-year at 2.639 levels amid a massive sell-off seen across the board.
The red metal trades now at USD 2.647/ pound, down -2.90% on the day, having posted fresh five-year low few minutes ago. Copper prices plunged after tumbling oil prices triggered a fresh sell-off amongst the Chinese hedge funds with expectations of more stop outs in the near term. Moreover, adding to the losses in copper, the US dollar index, which measures the greenback against a basket of six major currencies, hovered near multi-year peaks.
Copper prices are expected to remain exposed to more downside risk ahead of the Chinese Lunar New Year in February, a time when demand traditionally dries up as manufacturing levels slow for the week-long holiday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.70, above which gains could be extended to 2.72 levels. Meanwhile, support is seen at 2.630 levels, below which it can extend losses to 2.60 levels.
The red metal trades now at USD 2.647/ pound, down -2.90% on the day, having posted fresh five-year low few minutes ago. Copper prices plunged after tumbling oil prices triggered a fresh sell-off amongst the Chinese hedge funds with expectations of more stop outs in the near term. Moreover, adding to the losses in copper, the US dollar index, which measures the greenback against a basket of six major currencies, hovered near multi-year peaks.
Copper prices are expected to remain exposed to more downside risk ahead of the Chinese Lunar New Year in February, a time when demand traditionally dries up as manufacturing levels slow for the week-long holiday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.70, above which gains could be extended to 2.72 levels. Meanwhile, support is seen at 2.630 levels, below which it can extend losses to 2.60 levels.