Uncertainty over the US political deadlock is heavily influencing the demand for Copper which is under constant punishing pressure. One would think that there could have been a possible resolution between the Democrats and the Republican, but obviously given the circumstances, it seems a very naïve and optimistic hope and the result of this is gruelling the commodity market.
Unquestionably, the politicians in Washington need to stop playing this rotten game with the markets and stop testing the exhaustion level of traders. The budget talks which are heading towards the final chapter of this long drawn out saga could even fail in this phase as well, as there are still tensions between the Democrats and the Republicans over the sequester cuts.
Focus: The bias for copper remains to the upside and the price need to break above the 3.38 resistance zone to confirm its upward trend. The break of the 3.39 level will further open the floor towards its next target of 3.55.
Strategy in play
The price is trading above the 50 day (shown in green) and 100 day (shown in yellow) moving average on a 4 hour time frame which confirms that the uptrend is still intact. The RSI is trading inline with the price action which means that the bias could be to the upside.