Copper holds near resistance as Fed rate-hike fears ease

Copper prices have steadied near the $6.6822 resistance level, supported by a softer U.S. employment report that has eased concerns about aggressive Federal Reserve rate hikes. The commodity is currently trading at $6.6435, holding between key moving averages, with short-term momentum below but longer-term support intact.

The reduction in pressure for tighter monetary policy has improved demand expectations for industrial metals, contributing to copper’s recent gains. Analysts project the price to remain within a narrow range of $6.6048 to $6.6822, with limited near-term downside risk and a bullish medium-term outlook.

Technical indicators show a mixed picture, with the MACD on a Strong Buy signal, while oscillators like the Stoch RSI and CCI suggest potential selling pressure. The Ichimoku Kijun at $6.632 serves as immediate support, and a breakout above resistance could signal further upside.

The European Bank for Reconstruction and Development’s financing for copper mining modernization in Bulgaria adds long-term optimism. Traders are advised to watch for a breakout above resistance or a hold at immediate support to confirm the next directional move.