September Comex High Grade copper futures are holding steady on Tuesday after yesterday’s strong gains. Traders are still supporting the market in the wake of strong Chinese GDP data that boosted the outlook for metals demand.

A weaker U.S. Dollar is also helping to boost foreign demand for dollar-denominated copper. The dollar lost ground early in the session after Senate Republicans decided to scrap their plan on health care reform. Investors also increased bets the Federal Reserve would not raise interest rates a third time this year.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through yesterday’s high at $2.7375 will signal a resumption of the uptrend. This could lead to a test of the March 31 main top at $2.4725. Crossing to the strong side of this level will put the market in a bullish position.

Forecast

Copper is currently trading inside Monday’s range which indicates investor indecision and impending volatility. It is also trading inside a pair of uptrending Gann angles.

If the upside momentum resumes then look for investors to make a run at $2.7425. This is followed by a steep uptrending angle at $2.7510. Crossing to the strong side of this angle will put the copper market in an extremely bullish position.

The inability to take out the resistance will signal the presence of sellers. If the volume begins to increase or if the U.S. Dollar mounts a strong rebound rally then we could see a sharp break into the next uptrending angle at $2.6910.

This article was originally posted on FX Empire

More From FXEMPIRE:

• Watch Out – Ethereum Hashrate is Unstable

• Cautious Investors Still Have Plenty of Risk on the Table

• Gold Prices Inch Higher amid Fading Prospects of US Interest Rate Hikes

• Weak German ZEW Weighs on European Stocks

• U.S Dollar Shows Signs of Weakness, EUR/USD above 1.15

• The Dollar Slides, with Carney and the Pound in Focus