FxWirePro: Copper shows signs of exhaustion, break below 3.50 mark drag prices lower

FX-COPPER chart - Trading View 

COPPER was trading 0.34% lower on the day at 3.561 at around 10:30 GMT.

Price action is showing signs of exhaustion after testing multi-year highs. 

Stochs and RSI are on verge of rollover from overbought levels on the weekly charts.

MACD is on verge on bearish crossover on signal line. 'Bearish Divergence' on RSI and Stochs keeps pressure.

The pair has bounced off trendline support on Thursday's trade, but upside capped below 5-DMA.

Break below 3.50 mark will drag prices lower. 'Golden Cross' (bullish 50-DMA crossover on 200-DMA) on the weekly charts will keep downside limited.

Support levels - 3.491 (nearly converged trendline and 55-EMA), 3.348 (21W EMA), 3.314 (110-EMA)

Resistance levels - 3.594 (21-EMA), 3.608 (200H MA), 3.620 (20-DMA)

Summary: Copper has retraced slightly from multi-year highs at 3.732. Technical indicators are showing signs of exhaustion. Break below 3.50 mark could see further drag lower. Scope then for test of 3.314.