COPPER - Trading opportunity on Copper. Has it ended its downside correction? - 09/16/2024 (GMT)

Fundamental analysisCopper prices edged up above $4.3000 per pound, the highest in three weeks, supported by a weaker dollar amid expectations of a US Federal Reserve interest rate cut this week. A softer dollar makes metals cheaper.Markets have fully priced in a 0.25% rate cut by the Federal Reserve on Wednesday, with growing speculation of a 0.50% move. A rate cut would pressure the dollar and bolster economic growth, increasing metals demand.However, concerns about demand from the top metals consumer persist, as recent data from China showed industrial output, retail sales, and fixed asset investments missed forecasts in August. Additionally, China's urban unemployment rose to a six-month high, and home prices fell at the fastest pace in nine years. Technical analysisFrom the technical perspective, is seems that the bearish countertrend correction ended, at least in the short term, as price tested the Fibonacci level of 78.6% at around 3.9500 as a support. If price continues to move to the upside, the next level of resistance could be at 50% Fibonacci level at around 4.4000 before 4.5800.On the contrary, if price breaks the support of 3.9500 to the downside, the next level of support could be at 3.6180, at the last minimum reached in Nov 2023.