Copper has gained 6.3 percent this week and looks set to close above $3.30 (July 2014 high). It would only bolster the bullish technical setup, as indicated by the inverse head-and-shoulders breakout, solid rebound from the falling trend line in March and a rise above the ascending trendline.
Above $3.30, next big resistance is seen at $3.4617 (Dec. 23, 2013 high).
An uptick in copper prices is usually considered a positive sign for the global economy and also for the Australian dollar.
Note the Rejection at 161.8% Fib ext. level of 1.3274. Now we wait for a breakout bullish/bearish of the rising wedge pattern. Looks as if bearish break is on the cards. That would mark end of the rally from 1.20 handle.
Bearish price RSI divergence on the daily chart
Sell around 0.7990
Stops above 0.8043
Monthly chart – Watch for a break below or rebound from 1.6190… upside to be capped around 1.75, below 1.6190 would expose 1.5789 Oct 2016 low
Monthly chart below shows a close below 1.2460 – May 2016 low would be followed by a decline to rising trend line supp of 1.2252.
Multiple daily close above 1.1345 could be followed by a rally to 1.20 Gan fann line resistance
1-hour chart… nice breach of the falling trend line, we would have a sort of bullish flag breakout of the current hourly candle closes above the falling trend line. Draghi is trying hard to kill the EUR rally, but it isn’t working… everyone knows taper has already begun for countries like Germany as the ECB has fallen short of the mandatory bond purchases for three months to June.