Copper trades higher by about 0.8% in the European trading session which may be pressured by the recent interest rate hikes from several central banks, including the U.S Fed.

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The Federal Reserve Banker increased its interest rate by about 75bps as expected which supports the dollar to fight the souring inflationary pressure while investors fear slower global growth and dampen the metals demand which should pressure the prices of commodities.

The drop in commodities and in this case of metals might be due to the prior normalizing supply chains and slowing activity in China as well.

Another bearish factor might be the energy crisis in Europe with recession fears as manufacturing activity slows with China’s economic outlook and Covid situation remains uncertain, pressuring the base metal’s price.

However, easing of lockdowns in China and potential monetary supportive stance let the price not fall further as China accounts for half of the global consumption of Copper.

The metals demand might rise above the supply level again by 2025 which might double the price, according to Goldman Sachs.

Forecasts pointing to the downside, according to analysts estimates and algorithm calculations while the market trades around the lower standard deviation of the average price which might be supportive for core buyers.

The macro perspective and fundamental aspect of the current monetary policy stance still pressures with the rising dollar, giving the lower periodicity a bearish bias for the moment.

The daily interval of Copper trades rotational around the Quarter’s VWAP currently, traders may lean on the balance and value extremes as the lower value extreme of the Year’s developing value and the Decade’s VWAP serving as resistance, leading to selling and possible long liquidations.

The hourly interval with the day’s current perspective might find some selling at a prior VWAP close level which is confluent with the month’s VWAP and week’s upper value extreme. A swing failure above the swing highs might hint to absorption and reverse in the direction while traders may target rotations towards the balanced price range’s bracket high on the daily interval, depending on the fuhrer behavior of the auction.

Copper is seen as barometer of the global economic situation, which is by the recent interest rate hikes from various nations pressured. Therefore, the price of the metal might be seen as bearish until investors are able to see easing in the monetary stance.

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