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Copper retreats after setting new all-time high

  • Copper hit a high during today's European session at $5.09.
  • With the weakening of the US dollar, it is cheaper to acquire raw materials.

Copper has made a high at $5.09buoyed by a US dollar that has weakened recently.

The US CPI grows less than expected in April

The Consumer Price Index (CPI) grew 0.3% compared to April after increasing 0.4% in March. The figure is below the 0.4% expected by the market. Annual inflation has stood at 3.4%, in line with the consensus. Separately, the US Census Bureau reported today that retail sales were unchanged in April. This reading disappoints the market expectations of a 0.4% increase and together with the inflation figures, has led the Dollar Index (DXY) to reach a minimum of 104.43 points, so the bullish trend in copper is expected it stays. Currently, copper is trading at $4.88.

Technical levels in copper

The first support zone is located at $4.58 at the confluence with the 23.6% Fibonacci retracement. A historical maximum has been established today at $5.09, it is the immediate objective to be overcome by buyers since there are no upper resistances.

Weekly copper chart

Source: Fx Street

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