Copper prices have recovered from Thursday’s significant drop following the less-than-upbeat Non-Farm Payrolls (NFP) report this Friday. Before the report, the news of US President Donald Trump being infected with the coronavirus dominated market action, with investors seeking the US Dollar. But the latest instalment of the NFP data that showed that the US added fewer jobs than expected seems to have changed that sentiment.
Copper is now trading 3.41% higher and has just hit the 2.9740 mark, as it pulls up from intraday lows at 2.8345. Yesterday’s 5.11% drop was the largest that copper prices had fallen in a single day since the onset of the recovery in April. The Trump coronavirus news looked to continue the decline early Friday, but the NFP has caused a reversal and copper price looks set to close the week on a high.
Copper price is now approaching the 2.9795 resistance. A break above this level allows the price to cross the $3 per pound mark once more, targeting 3.0010. At this point, the extended broken wedge border will once more play a role-reversed function of resistance. A break above this border allows the copper price bars to aim for the 3.0275 price level, with 3.0920 and 3.1255 lining up as future upside targets.
A rejection at 2.9795 allows copper to dip towards 2.9510, with 2.9165 and 2.8695 lining up as potential downside targets.
