2015-01-13

The Bears Are Rampaging

That was quick. Only a week a ago Copper,Euro Reach Crucial Juncture
Is copper about to follow oil and iron ore lower?
Yes, yes it is. Here's the chart of copper from last week with the current copper price highlighted, along with the oil chart. Is the euro next?
There's no news as of yet driving the move, but as the data have been showing for several months, unless there is a big turnaround in the Chinese economy, the first data points in 2015 are going to be much lower than expected because the YTD growth figures reset. Growth looked better in 2014 because the start of the year was very strong. China watchers keep an eye on the data, but most news outlets just repeat the headline figures.

Whatever the reason, the bears are in control. Support is likely to break, oversold conditions will lead to plunging prices instead of rebounds. I expect the euro is next.

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