The copper market attempted a rally this week but struggled to maintain gains above the $6.50 level. Despite strong demand, the artificial intelligence sector's volatility has created challenges for copper bulls. However, the market remains well-supported, with the $6 level potentially acting as a significant floor. A rebound from current levels and a recapture of the $6.50 level could trigger a more substantial upward move.
The S&P 500 experienced significant volatility this week, influenced by the U.S. elections and interest rate concerns. The key levels to watch are $7,600 on the upside and the 50-week EMA at $7,259 on the downside. A break above $7,600 would signal strength, while a drop below $7,259 could indicate bearish momentum.
Silver and gold both showed bullish tendencies but faced resistance at key psychological levels. Silver struggled near the $55 level, while gold encountered hurdles below $4,200. Rising real rates continue to pose challenges for both metals, with potential downside risks for gold if it breaks below the weekly low, targeting the $3,500 level.
In forex markets, the USD/CAD pair rallied due to divergent employment data, with the U.S. adding 165,000 jobs against expectations of 65,000, while Canada lost 4,700 jobs. The GBP/USD pair rallied briefly before retracing, finding support near the 1.32 level. The EUR/USD pair tested the 200-week EMA before giving back gains, with downward momentum expected due to U.S. rate hike expectations. The USD/MXN pair faced pressure due to favorable Mexican interest rates, with potential for further declines if it breaks below the 200-week EMA.