Currently, the Copper market exhibits a slightly imbalanced downward trend on the Yearly perspective, with the upper value extremes of both the Quarter and the Month potentially acting as selling points. In the previous session, there was a selling tail in the closing, and this specific wick could potentially be revisited to repair.

The VWAP levels serve as targets and provide guidance for understanding the market structure. In this scenario, we can observe a slight imbalanced slope on the Yearly perspective, while the Quarterly and Monthly intervals appear to suggest a balanced approach. Market participants seem to be leaning on the extremes to assess and determine rotational scenarios.

Continuing from this observations, it’s evident that there’s a strengthening dollar in the medium- to long-term perspective. This, coupled with elevated interest rates and a global tightening cycle, is potentially creating deflationary effects that are putting pressure on the commodities sector. However, any indications of a dovish approach in monetary policy could provide support for commodity prices.

Expanding on this view, it’s worth noting that investors have reacted positively to China’s measures aimed at stabilizing the property market, along with encouraging PMI data and increased factory activity. These factors could contribute to supporting demand for copper. Additionally, the growing electric vehicle market could potentially provide a significant boost in demand for copper, given its essential role in EV production.

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