US2Y Technical Analysis
The 2-year yield is the first place I’m looking during the trading session here on Monday, as it gapped higher and then dropped a bit. We’ll have to watch this 2-year yield. It’s extraordinarily elevated, and that still provides a lot of pressure on certain markets.
We’ve had Trump come out and say he was still willing to talk to the Iranians. All they have to do is come to the table. That may provide a little bit of relief, but we’ll have to watch this because it will have a major influence on the U.S. dollar and risk appetite in general.
EUR/USD Technical Analysis
The euro looks very choppy during this session so far. The 1.15 level continues to be resistance. If we can break above there, then I think there might be a short-term pop to the upside here. I wouldn’t really read too much more into it than just that, maybe 50 pips or so. To the downside, if we were to break down below the 1.1450 level, then it likely could end up being a shorting opportunity.
Copper Technical Analysis
Copper markets look very much like they’re ready to try to break to the upside yet again. We are starting to think about $7. That’s a huge move. Ultimately, copper continues to feel the squeeze due to huge data-center demand, a lack of production, and, quite frankly, some of the mines that we’re so heavily relying upon are struggling to produce in normal quantities.
If interest rates continue to be a major problem, that might provide a little bit of cushion against the massive selling pressure. We’ve seen that from time to time. But ultimately, this is a supply-and-demand situation, and copper is going to be in demand for years.
DAX Technical Analysis
The DAX has shot straight up in the air, led mainly by industrials breathing a sigh of relief with energy prices dropping so far. That helps companies like Siemens and BMW. But at the same time, we are still in the same consolidation area that we have been in for a while. That has not changed despite the fact that we have popped.
Copper Price Forecast
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See all Copper forecastsThe 50-day EMA is an indicator that a lot of people may look to for signs of resistance. We’ll just have to see. If we can break above there, then the 26,000 level becomes very intriguing as a potential target. Short-term pullbacks will more likely than not continue to see the 25,250 level as potential support. I am looking for short-term pullbacks to take advantage of what I think will eventually be a break higher, but I’ll be watching those energy prices.