Aluminium yesterday traded with the negative node and settled -0.63% down at 103.50 despite of comment from the Premier Wen Jiabao said China is willing to invest in EU government bonds, helping commodities to rise in Asian afternoon session. However, the decline of economic sentiment indicator in the euro zone to three-year low and mixed US economic data cooled expectations for easing policies by the Fed during annual central bank meeting on Friday. In response, the US dollar index staged a strong rebound, causing commodities to trim early gains. LME aluminum closed with losses for a third straight trading day. LME aluminum failed to climb to $1,900/mt due to strong resistance at the 60-day moving average and later plunged to a low of $1,869/mt during European session. LME aluminum regained some losses at the tail of trading before finally closing at $1,879.3/mt, down $11/mt or 0.58%. Wait and see sentiment is running high ahead of the imminent central bank meeting on Friday. LME aluminum should struggle at $1,880/mt and move between $1,860-1,900/mt on Friday. In yesterday's trading session aluminium has touched the low of 103.2 after opening at 104.05, and finally settled at 103.5. For today's session market is looking to take support at 103, a break below could see a test of 102.5 and where as resistance is now likely to be seen at 104.2, a move above could see prices testing 104.9.

Trading Ideas:

Aluminium trading range for the day is 102.5-104.9.

Aluminium dropped as the decline of economic sentiment indicator in the euro zone to three-year low weighed on prices

Mixed US economic data cooled expectations for easing policies by the Fed during annual central bank meeting on Friday.

Chinese Premier Wen Jiabao expressed confidence in the euro zone moving out of its debt crisis