XCU/USD Forecast 08/06: Falls Sharply (Video&Chart)

(MENAFN- Daily Forex)

Copper got absolutely hammered during the trading session on Friday as interest rates jump in reaction to the jobs number coming out of the United States twice what was expected. This had rates screaming higher and anything that wasn't the US dollar lost out during the session.

We have now formed a double top in the copper market and I find that interesting. I also believe that eventually it will break. But in the short term, I think maybe we do get a little bit of a pullback. That does make a certain amount of sense, with the 50-day EMA closer to the $6.18 level.

If we press that and break down below it, then the next place I'll be watching is $6. $6 of course is a large round psychologically significant figure that a lot of people will be watching Bullish Drivers and Demand

All things being equal, this is a market that I believe continues to see a lot of demand in general, after all the supply is nowhere near enough to satiate the demand. And of course, the electrification of pretty much everything is going to continue to be a major driver.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money

Artificial intelligence also will have data centers driving up demand for copper. So, all in all, it is still a very bullish longer-term picture.

I would love for copper to drop closer to the $6 level so I can get involved with it. I do not want to short this market despite the fact that it's a very bearish look at the moment. I think this is short term, maybe a day or two of negativity and then copper could be a real opportunity. Do not sleep on it, I know a lot of you won't trade it, but copper is a great market and at this point, could end up being a very nice investment opportunity for the long term.

Ready to trade our daily Forex forecast? Here's a list of some of the best commodities brokers to check out.

MENAFN08062026000131011023ID1111226268