Strong Dollar Squeezes Copper Demand Amid Supply Uncertainty

Copper prices have been under pressure due to a stronger US dollar and rising oil prices. The higher input costs and firmer dollar are reducing demand for copper, making it less appealing as a USD-denominated commodity. According to market participants, the uncertainty surrounding copper's future supply is adding to the mixed sentiment in the market.

The technical indicators suggest that copper trades below its key short-term averages, with a range-bound price action expected between $6.5091 and $6.6135. The Ichimoku Kijun provides immediate support at $6.5583, while the MACD points to a strong sell. However, some momentum indicators, such as the Stoch RSI, suggest a potential buy.

Traders are waiting for a decisive move beyond the $6.6135 resistance or a breakdown below $6.5583 support to determine the next catalyst for copper prices.