Copper is trading up by nearly 0.16% this morning, ahead of the most important economic data release, US Non Farm payroll number. As we stand, this report today, is more likely to provide us only clues that what can be unfolding over the next coming few months. Provided that the NFP data for the month of August was on a weaker side, the expectations are very much same for this month which could keep the dollar on the softer side against the copper.
Despite this, traders are adopting a cautious approach as there is still no certainty as when Fed will start winding down their quantitative easing program. Certainly, the bulls are twitchy and they do not want to place any bigger bets, although the Fed member, Charles Evan has confirmed yesterday, that the economy need to constantly show job growth of 200K before they can consider their unwinding plan coming into action
The forecast for the final number is 180K and the previous reading was 160K, but I think that given what we heard from Charles Evans yesterday, the tapering process may not see the daylight for another few months. This could keep providing the support for the equity and the commodity market.
Focus: The major resistance is near the $3.34 and a break of this will further open the floor towards the $3.38. The uptrend is strong as the price is trading above the upward trend line and the immediate support is near the $3.26.