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Copper rebound capped by growth concerns

FXStreet (Mumbai) - Copper bulls have failed to capitalize on the rebound witnessed this Monday due to the weak German data raising concerns of the Eurozone re-entering recession this year.

The sentiment took a hit further after the International Monetary Fund (IMF) published disappointing global growth forecasts for 2014 yesterday. Copper on the New York Mercantile Exchange (NYMEX) is trading 0.13% lower at USD 3.035/pound. Chinese services PMI data released earlier today also highlighted a slowdown in the economic activity. Copper is sensitive to Chinese data since the world’s second largest economy happens to be the highest importer of Copper.

Copper may strengthen later in the day if the US Federal Reserve minutes fail to prop up the US Dollar Index, which is trading flat.

Copper technical levels

Copper has a resistance of 3.06 and 3.08 (low of 14th Aug, 2014), while the support is located at 3.017 (today’s low).

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