News that Chinese solar panel maker Shanghai Chaori Solar has defaulted on a corporate bond has seen selling take place in large volumes.
Prices have had difficulty breaking through the $3.25/lb level in the past three weeks. The emergence of the stronger dollar in the wake of better-than-expected non-farm payrolls number, coupled with the overall lack of conviction to break higher, has seen the pressure on copper prices escalate.
The four-hour chart is indicating that selling momentum is still strong, but given that prices are looking quite oversold we may see a degree of support come in at $3.08/lb.
The selloff has not been restricted to copper; gold and nickel have also suffered losses today.