5 Jan 2015
Copper tanks 1.30% on Oversupply fears
FXStreet (Mumbai) - Copper futures on Comex dropped to one week low levels during the European session, extending losses from the Asian hours as ample supplies and relatively stronger greenback continue to dampen investor sentiments.
The red metal trades now at USD 2.781/ pound, down -1.30% on the day, after having slid close to one week low levels at 2.778 some minutes ago. Copper prices extended losses on slower manufacturing in China, Europe and the US weighed on copper's demand outlook. Moreover, investors remained concerned about oversupply scenario in the market as major red metal producers such as Australia and Chile are showing no desire to cut output any time soon.
Adding to the sell-off in copper prices, US dollar soared to its highest level in nine years against its major currencies, which also dragged red metal prices down.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.82, above which gains could be extended to 2.844 levels. Meanwhile, support is seen at 2.756 levels, below which it can extend losses to 2.745 levels.
The red metal trades now at USD 2.781/ pound, down -1.30% on the day, after having slid close to one week low levels at 2.778 some minutes ago. Copper prices extended losses on slower manufacturing in China, Europe and the US weighed on copper's demand outlook. Moreover, investors remained concerned about oversupply scenario in the market as major red metal producers such as Australia and Chile are showing no desire to cut output any time soon.
Adding to the sell-off in copper prices, US dollar soared to its highest level in nine years against its major currencies, which also dragged red metal prices down.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.82, above which gains could be extended to 2.844 levels. Meanwhile, support is seen at 2.756 levels, below which it can extend losses to 2.745 levels.