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18 Mar 2015
Copper drops to fresh 3-week lows below USD 2.57/pound
FXStreet (Mumbai) - Copper prices on Comex slumped to fresh three week lows during the European session, extending losses for the third straight session, as anticipation of further US dollar strengthening post the release of FOMC statement providing fresh hints on the timing of rate-hike.
Copper hovers around 2.58
The red metal trades lower at 2.580 levels, recording a -2% loss on the day, having previously posted fresh three week lows at 2.568. Copper prices dropped further below 2.60 mark as traders wind up positions and remain on the sidelines ahead of the crucial FOMC decision which may cause massive volatility across the board.
The losses in copper were accelerated after China's average new home prices fell at the fastest pace on record in February on yearly basis.
Further weakness in copper was also evident in ShFE spreads for copper and zinc, where cash prices traded below three-month prices this week.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.62 levels. Meanwhile, support is seen at 2.56 levels, below which it can extend losses to 2.52 levels.
Copper hovers around 2.58
The red metal trades lower at 2.580 levels, recording a -2% loss on the day, having previously posted fresh three week lows at 2.568. Copper prices dropped further below 2.60 mark as traders wind up positions and remain on the sidelines ahead of the crucial FOMC decision which may cause massive volatility across the board.
The losses in copper were accelerated after China's average new home prices fell at the fastest pace on record in February on yearly basis.
Further weakness in copper was also evident in ShFE spreads for copper and zinc, where cash prices traded below three-month prices this week.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.62 levels. Meanwhile, support is seen at 2.56 levels, below which it can extend losses to 2.52 levels.