COPPER Analysis

Introduction

Copper is a widely traded industrial metal and a key indicator of global economic health. It is heavily influenced by supply and demand factors, including industrial production in major economies such as China, the US, and Europe. Copper prices are highly correlated with global economic growth and are often referred to as a leading indicator of economic activity. Key drivers include demand from the construction and electronics industries, mining output, and geopolitical events that affect supply chains. Economic data from China, such as manufacturing PMI, plays a particularly significant role in determining copper prices. Copper prices also react to changes in the US Dollar, as a stronger USD typically makes copper more expensive in other currencies.

Fundamentals and Interest Rates

The policy is with the current Interest rate 0%. Latest change was 0%.
On that side the Federal Reserve policy is Dovish and (FED) has set its interest rate to 3.75% by latest change, Dec 10, 2025 (-25bp).
(FED) Higher interest rates generally lead to higher returns on investments denominated in USD. This tends to attract foreign capital into USD assets.

Based on the economic and macro fundamental data, The Fundamental Bias of Copper is Weak Bullish and for the USD is Moderate Bullish.
Ziwox considering Weak Bearish bias for this asset and we expect prices to decline in the long-term. and Fundamental Score for USD is 2. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "Sydney", Market risk sentiment is Strong Risk-OFF. The Gold and Yen recorded the strongest performance, while the British pound and New Zealand Dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.54% increase against us dollar.
Euro "EUR", performance has been -0.13% down so far
Pond "GBP", performance has been -0.53% down as of now
Australian dollar "AUD", has dropped by -0.2%
New Zealand dollar "NZD", has dropped by -0.32%
Japanese YEN "JPY", experienced 0.07% rise
Swiss franc "CHF", experienced -0.23% fall so far
Canadian dollar "CAD", has lost -0.06%
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.

Market Sentiment and Positioning

Copper COT (Commitments of Traders):

Institutions Net Position on >COPPER is 59331 included 89699 long, 30368 short and 13458 position changed from last week.
So they mainly have a bullish view on this asset and bought Copper for higher prices in long-term.
Last week 13458 repositioning Indicates that they are optimistic about higher prices in mid-term.

USD COT (Commitments of Traders):

Institutions Net Position on >U.S. Dollar Index is 328 included 15416 long, 15088 short and 1057 position changed from last week.
So they mainly have a bullish view on this asset and bought USD for higher prices in long-term.
Last week 1057 repositioning Indicates that they are optimistic about higher prices in mid-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the COPPER with 89% 11% ratio. long pos and short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability COPPER prices may decrease.

Technical Levels and Support/Resistance

The COPPER pair is approaching a critical technical support level near 12873.19.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 13704.47. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.