Copper prices dip notably today as metal traders appeared to be turning cautious ahead of FOMC rate decision. In addition, the market needs to seek direction from Chinese data including investment and production to gauge the outlook of demand.
Technically, Copper is facing a key cluster resistance zone at around 3.8229 support turned resistance, 55 D EMA (now at 3.8200), as well as 38.2% retracement of 4.3556 to 3.5393 at 3.8511. Rejection by this resistance zone, followed by 3.703 near term support will bring deeper fall back to 3.5393 low, with prospect of resuming the whole down trend from 4.3556. Given the correction between Australian Dollar and Copper, this bearish scenario could push AUD/USD back towards 0.6457 low.
On the other hand, sustained break of 3.8229/8511 will argue that whole fall from 4.3556 has completed with three waves down, and turn outlook bullish for 61.8% retracement at 4.0438 and above. This bullish development could help push AUD/USD through structural resistance at 0.6817 decisively.
