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Copper, which is down by about 0.6% in the European trading session, is pressured by the central bank’s hints of a hawkish monetary policy with ongoing tightening.

However, concerns about supply and stronger demand from China due to its reopening might support the prices of the base metal. Production issues and halts in South and Central America might lead to lower inventories which might be supportive for Copper, including mining halts around Peru due to the geopolitical tensions and stops of processing operations in Panama might add to a bullish fundamental aspect.

The monthly perspective is down by about 4.3% due to the hawkish statements of central bankers to hike US interest rates by about 50 bps after the markets calmed down by the slowdown towards 25bps. Technically, the market found selling and potential long liquidations around the upper-value extreme of the Decade and prior bracket’s mean and may target the decade’s developing VWAP, waiting for any dovish hints in monetary policy.

The daily interval found selling around the Quarter’s upper-value extreme to the tick which brought the market lower for the third consecutive session in the row and may target the lower extreme DVAL as rotational scenarios where market participants might await buyers in combination with absorption.

Traders seemingly lean on the imbalanced market of the price currently. The market may find some selling around swing highs and the developing VWAP as well as the upper-value extreme called DVAH of this particular session.  

Money managers were net buying around 5,867 contracts Futures and Options of WTI Crude oil as of 25th January COT combined with short covering data which seemingly got into long liquidations in this week.

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