XCUUSD - Copper Demands On The Decline?

jpeacockfx Updated   
OANDA:XCUUSD   CFDs on Copper (US$ / lb)
Looking at the technicals on Copper we can see a clear downwards trend. Price is forming lower lows and lower highs which confirms that we are in a downwards trend. Price has also been respecting a downwards trendline which again shows us that we are in a downwards trend. We're currently sat at an area that we're interested in as price has held this area multiple times in the past so we expect that it will again. To give us more confidence with this setup, at our area we also have the 50% fib retracement level which we suspect bears will be wanting to hold and push price to the downside which favours our idea. We've also got the downwards trendline close by which if price reaches we'd expect to hold and to further help push price to the downside as bears will be waiting at this area. Fundamentally the USD is gaining a lot of strength in recent times and it continues to, until we see this change we are bullish on the USD, so this goes with our idea. Copper demands have decreased recently meaning that Copper prices will decrease. Comparing the decreasing demand for Copper against the strengthening USD it's clear to see that we want to be shorting this pair which is why we have a short bias.

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Stay Safe - JPI

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We've now got all of our entry criteria that we needed so our order has been set and filled. We are now short Copper. We expect that price will hold this level and will continue its trend to the downside, but only time will tell if this will happen.

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