DAX 40 drops to 4-month low as AUD/USD hits 11-month high and copper price rises
DAX 40 drops to 4-month low ahead of today’s FOMC meeting and rate decision as AUD/USD hits 11-month high and copper price rises.
Overnight summary
Global markets traded cautiously ahead of the Federal Reserve's (Fed) expected rate cut, with Wall Street dipping slightly, Europe posting its steepest drop in nearly a month, Asia holding steady, volatility rising, and UK inflation slowing.
DAX 40 slips to near 4-month low
The DAX 40's fall through its August low at 23,381 doesn't bode well for the bulls with the June low at 23,052 representing a possible downside target.
This scenario will remain in play while no bullish reversal takes the German blue chip index above Monday's high at 23,855.
Immediate resistance sits at the early August low at 23,381 and more resistance around the 2 September low at 23,483.
DAX 40 daily candlestick chart
AUD/USD trades in 11-month highs
AUD/USD continues its steady ascent, trading at levels last seen in October 2024, whilst being short-term capped around its November 2024 peak at $0.6688.
Once bettered, the $0.6698-to-$0.6714 area will be in focus. It consists of the May-to-June 2024 highs.
Minor support below the 11 September high at $0.6665 can be spotted around the July peak at $0.6625.
AUD/USD daily candlestick chart
Copper range trades below 6-week high
The copper price continues its gradual rise but currently seems to pause below Monday's $4.7260 high.
If bettered, the 200-day simple moving average (SMA) at $4.7829 would be in focus.
Minor support is seen between the mid-August high and 2 September low at $4.5483-to-$4.5410.
Copper daily candlestick chart
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