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Copper begins a bearish trend after reaching all-time highs

  • Copper rejected the 4.98 area, although it remains bullish for the month.
  • The Dollar Index has strengthened today, making it more expensive to purchase the raw material.

Copper has reversed the upward trend of recent sessionssetting a high during the European session at $4.98 and a low at $4.81 during the American session.

The bearish trend in copper is present

Copper has rejected $4.98, forming a lower high and thus starting a bearish trend driven by the strengthening of the US Dollar in the short term. The Dollar Index (DXY) has appreciated after the release of weekly jobless claims, falling to 222,000 from 232,000.

Technical levels in copper

Taking May levels into account, the first resistance zone is at $4.98, confluence with the 23.6% Fibonacci retracement. We see the first support in the $4.75 zone in convergence with the 50% Fibonacci retracement. The RSI reading showed us overbought levels in recent sessions and warned us of a possible setback.

Copper 4-hour chart

Source: Fx Street

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